Intel (INTC) is poised to disclose its fiscal first-quarter earnings after market close on April 24, accompanied by a conference call at 5:00 p.m. ET. Ahead of this, analysts have adjusted expectations for the semiconductor giant, notably surrounding earnings per share (EPS) and revenue forecasts. Analysts now anticipate EPS of 0 cents and revenue around $12.31 billion, a shift from previous estimates of 9 cents EPS on $12.86 billion in revenue.
The company faces several price target reductions. Bank of America cut Intel's target to $23 from $25, maintaining a Neutral rating, and noted potential impacts of tariff scenarios affecting sales and EPS. Wedbush lowered its target to $19 from $20, also with a Neutral outlook, citing anticipated weaker demand in server and PC markets impacting Intel's future segments. Bernstein similarly reduced its target to $21 from $25, predicting a temporary client-related boost followed by a channel flush later in the year.
In executive changes, Lip-Bu Tan has been appointed as Intel’s CEO, effective March 18, marking a significant leadership transition. Wells Fargo responded positively to the appointment, affirming a $25 price target, viewing it as a potential accelerator for Intel's foundry strategy.
Strategically, Intel has entered a preliminary agreement with TSMC for a joint venture concerning chipmaking facilities, proposing a 20% stake for TSMC. Additionally, Intel announced the sale of 51% of its Altera business to Silver Lake for $8.75 billion, with the transaction expected to close in 2025. This move is seen as part of Intel's effort to concentrate on its core x86 businesses.
Lastly, Intel is reportedly planning significant job cuts, targeting over 20% of its workforce to improve efficiency and refocus on an engineering-centric culture, marking a substantial organizational shift.
