The technology giant Intel continues to deal with the consequences of the last difficult year. Citigroup’s analysts expect that Intel’s revenues and earnings per share in the last quarter of 2022 will not exceed the normal seasonal range, “in light of the continued weakness in the end markets of personal computers and data centers,” wrote today (Tuesday) Citi’s chip analyst, Chris Denley, in a client note . “We expect Intel to provide full-year forecasts and talk about a recovery in its second half, but we don’t believe that will happen until 2024, and our estimates reflect that.”
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Analysts expect Intel to post earnings of $0.26 per share for the quarter and $1.81 per share for the full year, according to Yahoo Finance. Analysts cut their forecasts by 7 cents from the previous month, while Danley maintained a neutral rating.
Over the past year, Intel has had to deal with declining demand. The rate of global shipments of personal computers fell by 28.1% in the fourth quarter of 2022, according to the research company IDC, which estimates that global computer shipments will decrease by 5.6% during 2023. The weakness in the market added another challenge for Intel and its rivals in the third quarter of the year.
Last October, Intel cut its profit forecast for the entire year to $1.95 per share, compared to $2.30 previously. The company promised a $10 billion cut by 2025.
Denlay added that, apparently, Intel is expected to significantly cut costs in 2023, in order to restore credibility with Wall Street – a step that has already given its signals and helped boost the stock by over 13% since the beginning of the year so far.