The Intel stock price will be affected due to recent earnings. Investors are eagerly awaiting Intel’s results, which are scheduled to be released after regular trade on Thursday. Intel is struggling on numerous fronts, from declining PC demand to a weakening economy and fiercer competition.
According to the consensus view on Wall Street, Intel INTC -3.17% (NASDAQ:INTC) will announce September-quarter revenue of $15.31 billion and adjusted earnings per share of 34 cents. Analysts predict $16.32 billion in revenue for the current quarter.
Intel has already recovered from a difficult time. The business released financial figures for the June quarter in July that were drastically below Wall Street forecasts. At the time, it also gave a dismal sales prognosis for the following quarter and drastically cut its revenue projection for the entire year.
Intel Stock Performance
On Wednesday, Intel stock (NASDAQ:INTC) has lost 47% of its value so far this year. The iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index, has decreased 40% over the same time period, therefore it has performed worse than chip producers as a whole.
However, things can still become worse. Intel can still underperform despite the revised expectations. Since the company released its second-quarter financial results, the PC market has “deteriorated more,” according to Intel Chief Financial Officer David Zinsner to Bernstein analyst Stacy Rasgon last month. Additionally, Advanced Micro Devices AMD -1.10% (AMD), Intel’s major rival, warned earlier this month that weaker-than-expected computer demand would cause it to miss its financial projections for the September quarter.
This may be the reason why many analysts continue to have a poor outlook on Intel’s stock. Rasgon reiterated on Tuesday his Underperform rating for the stock of Intel. In his article, he claimed that Intel’s approach is “based on a flimsy foundation that is already collapsing as PCs are likely to fall to pre-COVID levels in the near future.”
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