Intel may report differently negative earnings surprise Citi said Thursday when it reports fourth-quarter results and guidance.
Chris Danely, a chip analyst at Citi, said in a new client note on Tuesday, “Given the continued weakness in the PC and data center end markets, Intel expects to see revenue and EPS growth in Q1 2023.” “While we expect Intel to provide full-year guidance and talk about a recovery in 2H23, we do not believe it will happen until 2024 and we estimates reflect that.”
Analysts expect Intel to earn $0.26 in the first quarter and $1.81 per share for the full year. Yahoo finance dataReflecting nervousness over Intel’s initial 2023 outlook, analysts lowered their estimate by 7 cents compared to just 30 days ago.
Dainley maintained a neutral rating for Inter until release.
Given that the PC market remains the same, close followers of last year’s Intel story may not be entirely shocked if the tech giant is disappointed. under severe pressure This is because consumers are refraining from upgrading the models they purchased during the pandemic.
Worldwide shipment of personal computers It plummeted 28.1% in the fourth quarter of 2022, according to IDC. The study team predicts that in 2023 his global PC shipments will fall by 5.6%.
Market weakness led to another difficult third quarter for Intel and its rivals.
At the end of October, Intel cut its full-year earnings forecast to $1.95 per share from $2.30. The company promised $10 billion in cost savings by 2025 to offset the sluggish topline.
Danely added that Intel is likely to cut costs aggressively to regain trust from Wall Street in 2023. This is what drives the stock to rise by more than 13% so far in 2023. AMD and how it’s shaping sales this year.
“Given the PC and data center fixes, in addition to the market share loss, we believe there is a further downside to the consensus estimate,” Danely wrote.
Brian Sotzi general editor, Yahoo Finance anchorFollow Sozzi on Twitter @BrianSozzi and LinkedIn.
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