With Intel (INTC, Financial) set to release its third-quarter earnings report this Thursday after the market closes, analysts are already bracing for disappointment from the industry behemoth. Estimates for the current fiscal year show revenues falling to $13.03 billion, down 8% from the same period a year earlier, with a net loss of around $955 million, or 23 cents per share.
With such an outlook, the overall sentiment for Intel is quite guarded. Just over a year ago, eleven of the fifteen analysts responding to the Visible Alpha survey had hold ratings, three recommended sell, and one suggested buy. This year has been unforgiving to Intel's stock, which closed at $22.90 on Tuesday, down from a high of $45.85 at the start of the year. Still, the key estimate known as the consensus price target has been set at $25.87—a figure that indicates a potential rise of almost 13% from today's price.
A few analysts at Wedbush are very skeptical when it comes to Intel, predicting that its Halloween will be a grim one. These concerns include a decline in the PC market and a competitive disadvantage with AMD in the server space. Adding to Intel's problems, Wedbush does not believe that third-quarter results will exceed the dismal forecast, suggesting that only an outlook that anticipates the worst could prevent a miss.
Indeed, this report comes at a crucial juncture for Intel as it struggles to hold market share against fierce competitors and new market trends. Its financial results remain key to investor and analyst attention. The next financial statement will be instrumental in assessing how Intel will navigate these adversities and reposition itself in the dynamic semiconductor environment.
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