Intel Q2 earnings: Poor show expected, all eyes on outlook
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Intel (NASDAQ:INTC) is scheduled to announce Q2 results on Thursday, Jul. 28, after market close.
Consensus EPS estimate is $0.70 (-45.3% Y/Y) and consensus revenue estimate is $17.93B (-3.1% Y/Y).
Over the last 2 years, INTC has beaten EPS estimates 75% of the time and revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 27 downward. Revenue estimates have seen 2 upward revisions and 22 downward.
Investors will look out for guidance as the chip sector has been plagued by supply chain woes and China's COVID-shutdowns. Comments on the CHIPS Act, which was passed by the Senate earlier in the day, will also be of interest. 
Analyst views:

Citi expects INTC to miss estimates in Q2.
Deutsche Bank expects a weak report and guidance. It said INTC may not maintain its 2022 outlook, and weakness will likely persist into 2023 and 2024.
Susquehanna cut INTC's Q2 estimates on dwindling PC demand and a tough comparison.
UBS warned that a weak PC environment and lack of govt. subsidies could force INTC to burn a substantial amount of cash in 2022 and 2023.
At a conference, INTC executives sounded more cautious and cited 3 major headwinds, leading to analysts cutting estimates.

Q1 recap:

INTC stock dropped after the firm's Q2 outlook missed estimates, despite its relatively positive Q1 results.
CEO Pat Gelsinger highlighted global challenges impacting the chip sector that will likely last till 2024.
Oppenheimer said INTC's comments about PCs were concerning, while BMO Capital said by maintaining 2022 outlook, INTC is "baking in a strong H2" ramp up.

Latest news:

INTC reportedly started raising prices on its chips amid rising cost pressures.
INTC acquired land for $111M to build its $20B production facility in Ohio, the Columbus Dispatch reported.
According to DIGITIMES, INTC is cutting the price of its Alder Lake CPUs as orders for H2 are far weaker than expected.
INTC launched its Arc A380 graphics chip in China last month and said it will be available in other regions later in the summer.

SA contributor SL Investments in a bullish analysis said INTC may see a successful turnaround and its fairly low valuation represents a buying opportunity. 

Shares of INTC, which fell 25.5% YTD, underperformed the S&P 500 and S&P 500 IT indexes by a wide margin in the last 1 year.