Intel Reports Earnings Today. What to Expect.

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Semiconductor analysts are expecting a weak forecast from

Intel

when the chip maker reports earnings after the market close Thursday, due to weak PC demand and a slowing global economy.

Wall Street expects

Intel

(ticker: INTC) to report June quarter revenue of $17.94 billion with adjusted earnings of 69 cents per share. Analysts’ estimates for the current quarter’s revenue is $18.72 billion.

Industry demand for computers has been softening. Worldwide shipments for personal computers fell 15% in the June quarter from a year earlier, IDC reported earlier this month. The research firm attributed the drop to “macroeconomic headwinds,” such as rising inflation and supply-chain disruptions.

Last week, Susquehanna analyst Christopher Rolland warned that Intel may need to cut its profitability guidance for the full year.

“We are cautious on the print given deteriorating PC demand, as we now expect worse top-line result/guidance,” he wrote. “We believe full-year GM [gross profit margin] guidance may be revised negatively.”

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The company’s earnings report also comes as the Senate is expected to soon pass legislation that includes tens of billions of dollars of incentives for domestic semiconductor production and research, and factory construction. Intel, along with other chip makers, would benefit from the bill.

Intel shares were down 23% year to date as of midday trading on Wednesday. For the same period, the

iShares Semiconductor ETF

(SOXX), which tracks the performance of the ICE Semiconductor Index, has declined 28%.

Write to Tae Kim at [email protected]