Zinger Key Points
- Analyst expects Intel's Q3 revenue at $13 billion, aligning with consensus, but notes challenges in the data center sector.
- For FY24, Intel's revenue forecast by the analyst is $53 billion, slightly above consensus, while FY25 estimates fall short of expectations.
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Intel Corporation INTC will report third-quarter financial results tomorrow, October 31, after the closing bell.
Rosenblatt analyst Hans Mosesmann anticipates that the tech giant will report results that are in line with expectations as the PC market stabilizes. However, he notes that this will be tempered by challenging trends in the data center sector, mainly due to market share losses to Advanced Micro Devices, Inc. AMD.
According to the analyst, Intel is moving towards a more agile structure following a 15% reduction in its workforce and a suspension of its dividend, aiming to prepare for a projected slowdown in 2025. Consequently, the analyst lacks confidence in the out quarter estimates, as Intel struggles to catch up with the current AI cycle while working to improve its CPU roadmap and the Intel Foundry business, among other challenges.
The analyst indicated that for the September quarter, revenue is estimated at $13 billion, aligning with the consensus, which reflects an 8% year-over-year decline and a 1% quarter-over-quarter increase. Management’s guidance for the quarter ranges from $12.5 billion to $13.5 billion, Mosesmann noted.
The analyst projects December quarter revenue will be $14 billion, surpassing the consensus estimate of $13.7 billion. This estimate represents a 9.1% year-over-year decline and a 7.7% quarter-over-quarter increase.
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The analyst forecasts FY24 revenue at $53 billion, slightly exceeding the consensus of $52 billion, with Non-GAAP EPS projected at $0.28, in line with consensus.
For FY25, estimated revenue is $55 billion and Non-GAAP EPS is $0.85, which fall short of the consensus expectations of $56.4 billion and $1.10, respectively.
Mosesmann reiterated the Sell rating on the stock with a price forecast of $17.
Price Action: INTC shares are trading lower by 1.83% to $22.48 at last check Wednesday.
Photo: Tada Images/Shutterstock.com
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