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Intel Corporation (INTC), headquartered in Santa Clara, California, is a global leader in semiconductor innovation and computing technology. With a market cap of $88.7 billion, Intel drives technological advancements by delivering cutting-edge processors and solutions that power data centers, personal computing, and artificial intelligence. The company is set to release its Q4 earnings on Thursday, Jan. 23.
Ahead of the event, analysts expect Intel to report a loss of $0.04 per share, down 110.5% from $0.38 in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating on another occasion.
Its adjusted loss of $0.63 per share for the last quarter missed the consensus estimate by 215%. Intel’s Q3 miss was driven by a $3.1 billion impairment charge, weaker PC and server demand, and ongoing operational challenges.
For fiscal 2024, analysts expect Intel to report a loss per share of $0.87, down 329% from a profit of $0.38 per share in fiscal 2023. However, in fiscal 2025, EPS is expected to rebound, growing by 124.1% year-over-year to $0.21.
Intel's shares have declined 56.3% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 26.3% gain and the Technology Select Sector SPDR Fund's (XLK) 27.1% gain during the same period.
INTC stock dropped over 5% on Dec. 18, contributing to a broader sell-off in chip stocks that erased early market gains. Despite ongoing challenges, INTC jumped 7.8% following its Q3 earnings results on Oct. 31. The company reported revenue of $13.28 billion, beating analyst expectations by 1.8%, though sales fell 6.2% year over year.
For Q4 2024, Intel projects revenue of $13.8 billion, slightly ahead of forecasts. However, steep declines in key metrics, such as a 15% gross margin and negative free cash flow of $2.7 billion, continue to raise concerns about its profitability and operations.
Wall Street maintains a cautious stance on Intel, with a consensus rating of "Hold." Among the 37 analysts covering the stock, one rates it a "Strong Buy," 30 recommend "Hold," one suggests a "Moderate Sell," and five rate it as a "Strong Sell."
The average price target of $26.10 indicates a potential upside of 26.9% from current levels.
