Anticipated Results
Earnings: Analysts following FactSet’s consensus predict an adjusted fourth-quarter earnings per share of 45 cents, compared to 10 cents in the same period the previous year.
Revenue: FactSet’s tracked analysts estimate that Intel’s revenue for the fourth quarter amounts to $15.2 billion, up from $14.0 billion in the same quarter of the previous year. The consensus further indicates a projected 28% increase in revenue, reaching $8.5 billion, for Intel’s client-computing unit, which stands as the company’s largest division.
Stock Movement: Intel’s shares have exhibited gains in response to the previous three earnings reports, including a 9% increase in the most recent one. Over the past 12 months, the stock has witnessed a growth of 68%, with a notable 52% increase in the last three months. Among the 42 analysts tracked by FactSet, opinions on Intel’s stock are divided, with nine holding buy ratings, 27% holding hold ratings, and six having sell ratings. The average price target stands at $44.04, reflecting a 12% decrease from current levels.
Lee raised concerns about potentially bearish estimates regarding Intel’s PC client sales, citing recent weakness in the overall PC supply chain.
Meanwhile, TD Cowen’s Matthew Ramsey expresses optimism about the future prospects of AI PCs, starting with the debut of Meteor Lake, followed by Arrow Lake, Lunar Lake, and Panther Lake planned for 2025. These advancements, according to Ramsey, are well-positioned as client-side inference workloads grow in significance. However, Ramsey acknowledges that the incremental impact of these developments remains uncertain, citing Intel’s disclosed Gaudi pipeline of approximately $2 billion, with limited visibility on commitments or timing. Nevertheless, he notes that the sum, given Intel’s scale, is relatively small.