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AI Earnings: 3 Reports to Watch This Week

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Earnings season kicks into a much higher gear this week, with a wide variety of companies on the reporting docket. The period has primarily been positive so far, with the big banks’ results not causing any spooks.

Interestingly enough, several companies with artificial intelligence (AI) exposure are on the reporting docket, including Intel INTC, Vertiv VRT, and Western Digital WDC. But how do expectations stack up heading into the releases? Let’s take a closer look at each.

Vertiv

Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Shares have been remarkably strong over the last year, gaining nearly 520% on the back of robust quarterly results.

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Image Source: Zacks Investment Research

Earnings expectations have been revised modestly higher, with the $0.37 Zacks Consensus EPS estimate up 3% since February and suggesting 54% growth from the year-ago period. Revenue revisions haven’t been as positive, with the $1.6 billion consensus estimate down roughly 3% over the same timeframe.

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Image Source: Zacks Investment Research

The company has benefited dramatically from scorching-hot demand for its solutions, posting double-digit percentage year-over-year revenue growth rates in its last seven quarters thanks to a rapidly expanding backlog.

Intel

Intel’s portfolio of AI processors and integrated accelerators allows developers to enable high-performance and efficient AI solutions at the edge or in the data center. Shares saw a strong run over the last year before facing selling pressure post-earnings in its latest release, up 18% overall compared to the S&P 500’s 24% gain.

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Image Source: Zacks Investment Research

Analysts have revised their earnings expectations considerably lower since February, with the $0.13 Zacks Consensus EPS estimate down 18% but suggesting 425% growth from the year-ago period. Operational efficiencies have greatly improved the company’s profitability picture, helping to explain the outsized growth.

Top line revisions have primarily remained unchanged, as the $12.9 billion expected is down a modest 0.9% over the same timeframe and suggests a 9% climb year-over-year.

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Image Source: Zacks Investment Research

Given the poor share performance over the last three months (-30%), a solid quarterly release could breathe life into the stock.

Western Digital

Western Digital designs, develops, manufactures, and markets a wide range of HDDs used in desktop PCs, servers, network-attached storage devices, video game consoles, digital video recorders, and other consumer electronic devices.

Like VRT, shares have been red-hot over the last year thanks to robust quarterly results, gaining 110% compared to the S&P 500’s 24% gain.

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Image Source: Zacks Investment Research

The revisions trend for the quarter to be reported has been notably bullish, up nearly 300% to $0.21 since February and suggesting 115% growth from the year-ago period. Revenue revisions have also been positive, with the $3.3 billion expected climbing a modest 1% over the same period. Β 

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Image Source: Zacks Investment Research

Western Digital has provided big beats as of late, exceeding the Zacks Consensus EPS estimate by an average of 15% across its last four releases.

Bottom Line

Earnings season shifts into a much higher gear this week, with representation from every sector.

Three companies with exposure to artificial intelligence (AI) are on the docket: Intel INTC, Vertiv VRT, and Western Digital WDC.

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Vertiv Holdings Co. (VRT) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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