Key Takeaways:
- Intel (INTC, Financial) is projected to report its sixth consecutive quarterly loss with revenue declining by 7%.
- Analysts expect a significant drop in EPS by 50%, settling at $0.01, emphasizing the need to follow CEO Lip Bu-Tan's strategic moves.
- Current analyst forecasts suggest a moderate downside risk, but potential fair value estimates indicate a slight upside.
Intel's Financial Outlook Amidst Challenges
Intel (INTC) finds itself at a critical juncture as it gears up to announce its sixth consecutive quarterly loss. Revenue for the second quarter is predicted to slide by 7%, bringing it down to $11.88 billion. This challenging environment has prompted analysts to forecast a dramatic 50% decline in earnings per share (EPS), reducing it to merely $0.01. In light of these developments, investors are keeping a close watch on CEO Lip Bu-Tan's strategic initiatives aimed at reshaping Intel's chipmaking strategy, which may pave the way for future growth prospects.
Wall Street Analysts’ Forecast
Insights from 33 analysts reveal a one-year price target range for Intel Corp (INTC, Financial), averaging at $21.67. The projections offer a high estimate of $28.30 and a low estimate of $14.00. This average target suggests a potential downside of 7.58% from the current market price of $23.44. For investors seeking more comprehensive data, additional estimates can be explored on the Intel Corp (INTC) Forecast page.
Brokerage Recommendations and GF Value Estimation
The consensus from 47 brokerage firms currently rates Intel Corp (INTC, Financial) at an average of 3.1, which categorizes the stock as a "Hold." This recommendation is part of a broader rating scale ranging from 1 (Strong Buy) to 5 (Sell), reflecting a neutral stance in the context of the stock's current performance and outlook.
According to GuruFocus estimates, Intel Corp (INTC, Financial)'s GF Value over the next year is projected to be $23.86. This estimation suggests a slight upside of 1.77% from the current trading price of $23.44. The GF Value is a proprietary GuruFocus metric that aggregates historical trading multiples, past business growth, and projected performance to estimate the stock's fair trading value. For further insights, detailed data are available on the Intel Corp (INTC) Summary page.
