Intel will be first major computer chip maker to report first-quarter results, after the market close Thursday. Wall Street expects meager results.
According to FactSet, the analyst consensus estimate is that
Intel
(ticker: INTC) will report revenue of $11.01 billion with adjusted earnings per share loss of 16 cents for the March quarter. Analysts’ estimate for the current quarter’s revenue is $11.74 billion with 0 cents in EPS.
Intel is going through a difficult time. Demand for PCs–many of which are powered by Intel chips–has only gotten worse in recent quarters. Earlier this month, the research firm IDC said worldwide shipments of PCs fell 29% in the March quarter from a year earlier. That follows a 28% drop from a year earlier in the December quarter and a 15% decline in the September quarter.
Earlier this week, Stifel analyst Ruben Roy reiterated his Hold rating for Intel stock, citing his expectations for disappointing results the rest of the year. He has a $28 stock price target for the chip maker.
“Recent data points indicate continued weakness in the PC market,” he wrote. “Our estimates remain below consensus [for 2023 and 2024].”
The analyst cited Intel management’s prior commentary saying the weak macro environment would last at least through the second quarter.
Intel shares rose 0.6% to $29.07 in midday trading Wednesday. The stock has fallen 36% over the last 12 months.
Write to Tae Kim at tae.kim@barrons.com
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