Should I buy Intel shares before Q3 results?

Intel Corporation (NASDAQ: INTC) is scheduled to announce third-quarter earnings results on Thursday, October 21, after the market closes. Intel expects revenue of $19.1 billion, up 6% year over year; still, the share price is at the same level as a year ago despite a significantly improved technology outlook.

Momentum is building

Intel Corporation will announce third-quarter earnings results on Thursday after the market closes, and it is important to say that the company expects $19.1 billion revenue, an increase of almost $1 billion on a fiscal year basis despite losing the Apple businesses.

For the third quarter, Intel expects to earn an adjusted $1.10 a share, and according to the company’s management, momentum is building, execution is improving, and customers continue to choose Intel for leadership products.

Intel has proven improvements throughout the second quarter of 2021; total revenue has increased by 2% Y/Y to $18.5 billion, while the GAAP EPS was $1.24. Intel raised its profit expectation to $4.80 per share for the 2021 fiscal year (prior guidance was $4.60), while the full-year revenue should be around $73.5 billion.

The momentum the company achieved during the last several months reflects improved market conditions while Pat Gelsinger, Intel CEO, said:

There’s never been a more exciting time to be in the semiconductor industry. The digitization of everything continues to accelerate, creating a vast growth opportunity for us and our customers across core and emerging business areas.

Fundamentally looking, Intel trades at less than seven times TTM EBITDA, and shares of this company could provide solid returns over the next few years. Intel’s balance sheet remains stable, the current dividend yield is around 2.5%, and with a market capitalization of $220 billion, shares of this company are fairly valued.

Technically, Intel shares could advance above the current price levels if the company posts strong third-quarter results.

$56 represents current resistance

Intel stock price has fallen more than 20% after reaching the highest level in 2021 of $68.4 on April 12, and for now, bears remain in control of the price action.

Data source: tradingview.com

Intel shares continue to trade near 2021 lows, and if the price falls below $50 support, the next target could be at $45. On the other side, if the price jumps above $56 resistance, it would signal trading shares, and the next target could be at $60 or even above.

Summary

Intel Corporation is scheduled to announce third-quarter earnings results on Thursday, October 21, after the market closes, and if the company posts strong results, the share price could be above the current levels. Intel trades at less than seven times TTM EBITDA, and if you are looking for a solid return potential, shares of this company can be a good choice.

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