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Santa Clara, California-based Intel Corporation (INTC) designs, develops, manufactures, markets, and sells computing and related products and services. Valued at $136.31 billion by market cap, the company specializes in microprocessors, chipsets, embedded processors, microcontrollers, flash memory, network and communication devices, and digital imaging products. The leading chipmaker is expected to announce its fiscal second-quarter earnings for 2024 on Thursday, July 25.
Ahead of the event, analysts expect INTC to report a loss of $0.12 per share on a diluted basis, a 140% jump from a loss of $0.05 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. In the previous quarter, INTC revealed that its foundry unit incurred an operating loss totaling $2.50 billion, and its revenue fell 10% year over year to $4.4 billion.
For the full year, analysts expect INTC to report EPS of $0.09, down 76.3% from $0.38 in fiscal 2023.
INTC stock has underperformed the S&P 500’s ($SPX) 26.9% gains over the past 52 weeks, with shares up 5% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 37.1% gains over the same time frame.
On May 8, INTC shares closed down more than 2% after the company said that it expects Q2 revenue below the midpoint of $12.5 billion to $13.5 billion after U.S. regulators restricted Huawei from buying semiconductors from Qualcomm and INTC.
On Apr. 26, INTC shares closed down more than 9% after forecasting Q2 revenue between $12.5 billion and $13.5 billion, below the consensus estimates of $13.63 billion. The company’s Q1 revenue and adjusted EPS were $12.72 billion and $0.10, falling short of the consensus estimates of $12.78 billion and $0.14, respectively. Moreover, its adjusted EPS guidance for the current quarter at the midpoint is $0.10, below analyst estimates of $0.26.
Analysts’ consensus opinion on INTC stock is cautious, with a “Hold” rating overall. Out of 34 analysts covering the stock, four advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, 25 give a “Hold” rating, and three recommend a “Strong Sell.” The average analyst price target for INTC is $39.49, indicating a potential upside of 23.3% from the current levels.
On the date of publication, Dipanjan Banchur 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.
