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Key Takeaways
- Intel is set to report earnings after the market closes on Thursday.
- Analysts expect the chipmaker to swing to a loss and for Intel’s revenue to decline year-over-year.
- Analysts expect revenue to decline 8% year-over-year to about $13 billion, along with a net loss of $955 million, or 23 cents a share.
Intel’s (INTC) third-quarter results are due after the closing bell on Thursday. Analysts aren’t bullish on the struggling chipmaker, with Wall Street generally calling for a loss and expecting comparatively little upside for the shares.
Of the 17 brokers focused on Intel who are tracked by Visible Alpha, 13 have “hold” ratings, compared to three “sell” ratings and just one “buy.” Intel stock has lost more than half its value this year, finishing Tuesday at $22.90. The consensus price target is $25.87, about a 13% premium to today’s close.
Wedbush analysts said they “anticipate an unhappy Halloween” for Intel. The PC market has slowed, the firm said, and Intel is disadvantaged against rival Advanced Micro Devices (AMD) when it comes to the server market.
Intel Revenue Decline, Net Loss Seen by Analysts
Analysts expect revenue to decline 8% year-over-year to $13.03 billion, along with a net loss of $955 million, or 23 cents a share, according to Visible Alpha.
Wedbush is so skeptical that Intel will meet or beat those expectations that the firm said the company’s only hope for third-quarter results is that it was “so conservative with its [most recent] outlook, that even adverse conditions for multiple business aren’t enough to create a miss.”