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Intel’s fourth-quarter earnings fell short of Wall Street’s expectations.
Courtesy of Intel
Intel on Thursday released its earnings forecast for the March quarter, which is well below Wall Street expectations. The company’s shares fell in after-hours trading.
According to FactSet, the semiconductor company reported adjusted earnings per share for the fourth quarter of 10 cents, compared with Wall Street’s consensus forecast of 21 cents. Earnings of $14 billion fell short of analyst estimates of $14.49 billion.
Intel has a revenue forecast range of $10.5 billion to $11.5 billion for the quarter, well below the consensus $13.93 billion.
Intel’s stock initially fell by as much as 6% after the release.
This is breaking news. Read the preview of Intel’s earnings below and check out the detailed analysis soon.
Intel will be the first major computer chip maker to report fourth quarter earnings after the market close. Wall Street expectations are low.
According to FactSet, the analyst consensus estimates are:
intel
(Ticker:
INTC
) reports December quarter earnings of $14.49 billion on adjusted earnings of 21 cents per share. The analyst’s estimate for the quarter is his earnings per share of 25 cents on earnings of $13.93 billion.
Intel is going through tough times. In October, the company released its fourth-quarter earnings forecast, well below consensus at the time. In addition, the demand environment for personal computers seems to be steadily deteriorating. Global PC shipments fell 28% year-over-year in the December quarter after declining 15% year-over-year in the September quarter, according to research firm IDC. IDC cited the continuing unwinding of the pandemic-era boom.
Earlier this week, Susquehanna analyst Christopher Rowland reiterated his negative assessment of Intel stock, citing expectations for a further slowdown in corporate technology spending this year.
“We believe the full year 2023 will remain at risk and data centers will remain challenged throughout the year as the weakness continues in the first half of 2023,” he wrote.
Rowland expects a disappointing forecast when Intel reports its results.
“We believe guidance and estimates have fallen, but with sentiment still low, it’s hard to tell what’s in the ‘inventory,'” he wrote.
Intel’s stock has fallen 42% over the past 12 months. It rose 0.6% in pre-market trading on Thursday.
Write to Tae Kim at tae.kim@barrons.com.
