clever (INTC) may report differently Unexpectedly negative earnings when it reports fourth-quarter results and guidance on Thursday, according to Citi.
“We expect Intel to guide Q1 2023 revenue and EPS below normal as the PC and data center end markets continue to weaken,” Citi chip analyst Chris Danely wrote. in a new customer note on Tuesday. “We expect Intel to issue full-year guidance and talk about resilience in the second half of 2023 but we don’t believe that will happen until 2024 and our estimates reflect that.” there.”
Analysts are looking for first-quarter earnings of $0.26 for Intel and $1.81 a share for the full year, according to the company. Yahoo Finance Data. Reflecting nervousness about Intel’s initial outlook for 2023, analysts have slashed their estimates by 7 cents from just 30 days ago.
Danely maintains a Neutral rating on Intel until release.
Those who closely followed the Intel story over the past year might not be entirely shocked if the tech giant disappoints while the PC market remains. under severe pressure when consumers don’t want to upgrade their pandemic-purchased models.
Global PC shipments fell 28.1% in the fourth quarter of 2022, according to IDC. The research organization estimates global PC shipments will decline by 5.6% in 2023.
The market weakness led to another challenging quarter for Intel and its rivals in the third quarter.
At the end of October, Intel cut its full-year profit forecast to $1.95 a share from $2.30 previously. The company has promised $10 billion in cost cuts through 2025 to make up for the slow in revenue.
Danely added that Intel is likely to aggressively cut costs in 2023 to regain credibility with Wall Street – a factor that has helped drive the stock up more than 13% so far in 2023. AMD and how It shapes sales for the year.
“We believe there are more downsides to Consensus estimates due to PC and data center adjustments, besides loss of market share,” Danely writes.
Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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