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Intel Corporation (INTC), headquartered in Santa Clara, California, is a global semiconductor design and manufacturing leader. With a market cap of $96.17 billion, Intel provides cutting-edge technology solutions, powering a wide range of industries with its microprocessors, data center products, and artificial intelligence capabilities. Intel is set to announce its Q3 earnings on Thursday, Oct. 24.
Ahead of the event, analysts expect INTC to report a loss of $0.20 per share, down 171.4% from earnings of $0.28 in the year-ago quarter. The company has beaten Wall Street's bottom-line estimates in two of the last four quarters while missing on other two occasions.
Its adjusted loss of $0.14 per share for the last quarter missed the consensus estimate by 27.3%. Higher costs from accelerated AI chip production and competitive pricing impacted Intel's quarterly performance, leading to a net loss.
For fiscal 2024, analysts expect INTC to report a loss per share of $0.47, down 223.7% from EPS of $0.38 in fiscal 2023.
INTC stock is down 55% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 20.6% gains and the VanEck Semiconductor ETF’s (SMH) 41.7% returns over the same time frame.
On Aug. 30, Intel shares surged 9.5% following the company's announcement that it had enlisted Morgan Stanley and Goldman Sachs to explore strategic alternatives, including possible restructuring and divestitures, to address its financial struggles. However, Intel missed both revenue and profit expectations, leading to a nearly 30% drop in its stock price.
The consensus opinion on INTC stock is cautious, with an overall “Hold” rating. Of 36 analysts covering the stock, two advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 30 suggest a “Hold,” one advises “Moderate Sell,” and two suggest a “Strong Sell.” INTC's average analyst price target is $29.36, indicating a potential upside of 30% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
