Intel Corporation (INTC), headquartered in Santa Clara, California, is a global leader in semiconductor innovation and computing technology. Intel, with a market capitalization of $88.7 billion, drives technological advancement by delivering cutting-edge processors and solutions that power data centers, personal computing, and artificial intelligence. The company is scheduled to announce its fourth quarter financial results on Thursday, January 23rd.
Ahead of the event, analysts expected Intel to report a loss of $0.04 per share, down 110.5% from $0.38 a year earlier. The company has missed consensus estimates in three of the last four quarters, but beat consensus estimates in another.
Last quarter’s adjusted loss of $0.63 per share was 215% below consensus estimates. Intel’s third-quarter failure was driven by $3.1 billion in impairment charges, weak demand for PCs and servers, and continued operational challenges.
Analysts expect Intel to report a loss per share of $0.87 in fiscal 2024, a 329% decrease from earnings per share of $0.38 in fiscal 2023. However, EPS is expected to recover in FY2025, increasing by 124.1% YoY. Now at $0.21 per year.
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Intel stock is down 56.3% over the past 52 weeks, significantly lower than the S&P 500 Index ($SPX)’s 26.3% gain and the Technology Select Sector SPDR Fund’s (XLK) gain of 27.1% over the same period.
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INTC stock fell more than 5% on Dec. 18, contributing to a broader selloff in semiconductor stocks and erasing early market gains. Despite ongoing challenges, INTC surged 7.8% following its third quarter results on October 31st. The company reported revenue of $13.28 billion, 1.8% higher than analysts’ expectations, although sales declined 6.2% year over year.
Intel projects fourth-quarter 2024 revenue of $13.8 billion, slightly above expectations. However, concerns about the company’s profitability and management continue to rise due to significant declines in key metrics, including a gross profit margin of 15% and negative free cash flow of $2.7 billion.
Wall Street remains cautious about Intel, with a consensus rating of “Hold.” Of the 37 analysts covering the stock, 1 rated it a “strong buy,” 30 rated it a “hold,” 1 rated it a “moderate sell,” and 5 rated it a “strong sell.” .
The average price target of $26.10 suggests an upside potential of 26.9% from current levels.
On the date of publication, Rashmi Kumari did not have any positions (directly or indirectly) in any securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see the Barchart Disclosure Policy here. More news from Barchart
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