Intel Stock FY2023 Q4 Third-party Analysts' Forecast & Preview

Intel Corporation's stock has staged a dramatic turnaround so far in 2023, rising 44.32% year-to-date through October 6. This sharp rebound comes after a painful multi-year decline in large part driven by manufacturing setbacks and loss of market share. The chip giant's shares sank to multi-year lows in 2022 as rivals like Taiwan Semiconductor Manufacturing Company (TSM) and Advanced Micro Devices (AMD) capitalized on Intel's technology delays.

However, under new CEO Pat Gelsinger, Intel is working diligently to regain its former dominance in semiconductor fabrication. The company is investing heavily in next-generation production capabilities aimed at leapfrogging competitors within four years. So far, according to The Motley Fool, Intel appears to be on track with its ambitious technology roadmap, having already launched its Intel 4 process node and lining up the Intel 3, Intel 20A, and Intel 18A nodes for the coming years.

Intel's stock recovery over the past year reflects growing investor confidence that the manufacturing issues may be temporary and that Intel can potentially reclaim technology leadership over time. . This could open up enormous new revenue opportunities in the foundry services market, which is expected to grow to more than $200 billion by 2028. Intel has already secured customers like MediaTek and Ericsson and received a large prepayment for Intel 18A capacity from an unnamed major client.

The Motley Fool believes that while Intel's near-term financial results remain depressed in part due to PC market weakness, its future potential appears bright if it can get its foundry business to work. With progress on the manufacturing front, Intel's stock could deliver attractive long-term returns for patient investors. The company's bold plans may finally be coming to fruition.

Source: Intel Stock Has Soared 44% in 2023. Is It Still a Buy? (The Motley Fool) >>

Part 2：Intel FY2023 Q3 Earnings Report Recap

1. Intel Key Indicators and Historical Earnings Report

• - Intel FY2023 Q3 EPS was $0.07, YOY -72.00%
• - Intel PE Ratio today is -- 
• - Intel FY2023 Q3 Revenue was $14.2B, YOY -7.69% 
• - Intel FY2023 Q3 FCF was $71M, YOY -101.13%
• - Intel FY2023 Q3 Current Ratio was 1.53, YOY -13.56% 
• - Intel FY2023 Q3 ROA was 0.16%, YOY -73.13%
• - Intel FY2023 Q3 ROE was 0.29%, YOY -71.10%
• - Intel FY2023 Q3 Gross Margin was 42.51%, YOY -0.24% 
• - Intel FY2023 Q3 Net Margin was 2.19%, YOY -67.04%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Intel FY2023 Q3 Financial Statement Analysis

• Intel reported second quarter revenue of $12.95 billion, down 15% year-over-year. Net income attributable to Intel was $1.48 billion or $0.35 per diluted share, compared to a net loss of $0.45 billion or $(0.11) per diluted share in the second quarter of 2022.

   

  On a non-GAAP basis, Intel reported second quarter earnings of $0.13 per diluted share, down 54% from $0.28 per diluted share in the year ago period.

   

  Revenue declined across most segments in the second quarter. The Client Computing Group saw revenue decrease 12% year-over-year to $6.78 billion. Data Center and AI revenue declined 15% to $4 billion. Network and Edge revenue fell 38% to $1.36 billion.

   

  Gross margin contracted in the second quarter to 35.8% on a GAAP basis and 39.8% on a non-GAAP basis, down from 36.5% and 44.8% respectively in the year ago period. The decline in gross margin reflects lower revenue and increased costs.

   

  Operating income swung to a loss of $1.02 billion on a GAAP basis, compared to a loss of $0.70 billion in the second quarter of 2022. On a non-GAAP basis, operating income declined 68% to $0.46 billion. Lower revenue and margin pressure weighed on profitability.

   

  For the third quarter of 2023, Intel expects revenue of $12.9 billion to $13.9 billion. The company forecasts GAAP earnings of $0.04 per share and non-GAAP earnings of $0.20 per share. Intel expects gross margin to be approximately 39.1% on a GAAP basis and 43.0% on a non-GAAP basis.

   

  Overall, Intel's second quarter results reflect ongoing demand softness and competitive pressures. The company is focused on improving execution as it works to regain process leadership and transform into an integrated device manufacturer. But headwinds may persist, and Intel likely faces challenges as it navigates the current macroeconomic uncertainty.

Source: Intel Reports Second-Quarter 2023 Financial Results (www.intc.com) >>

3. Intel FY2023 Q3 Business Segment Data

Intel's business is organized into five key segments: Client Computing Group (CCG), Data Center and AI Group (DCAI), Network and Edge Group (NEX), Mobileye, and Intel Foundry Services (IFS).

Intel's Client Computing Group saw revenue decline 12% year-over-year to $6.78 billion in the second quarter. Notebook processor sales fell 18% to $3.90 billion as consumers and businesses curtail spending. Desktop processor revenue increased 3% to $2.37 billion. CCG operating income rose 19% to $1.04 billion, aided by platform cost reductions. But the segment faces challenges in the contracting PC market.

The Data Center and AI Group reported a 15% drop in second quarter revenue to $4 billion. This reflects reduced enterprise demand as companies optimize infrastructure spending. Operating loss widened to $0.16 billion from $0.08 billion last year amid competitive pressures. DCAI is working to regain data center share with next generation Xeon processors.

Network and Edge revenue tumbled 38% year-over-year to $1.36 billion in the second quarter, with the segment swinging to an operating loss of $0.19 billion. Demand weakening from communications service providers and governments weighed on NEX performance. 5G infrastructure expansion has slowed significantly. Mobileye revenue was flat at $0.45 billion in Q2 as design win momentum helped offset macro concerns. Operating income declined 32% to $0.13 billion.

Mobileye maintains a leadership position in advanced driver assistance systems, and is securing additional autonomous vehicle collaborations.

Intel Foundry Services generated $0.23 billion in foundry revenue, up from $0.06 billion last year. But IFS posted a $0.14 billion operating loss as Intel continues investing to scale up its foundry business. IFS aims to become a major US-based provider of foundry capacity to help restore chip manufacturing leadership.

In aggregate, Intel's segments reflect challenging market conditions amid economic uncertainty. But strategic investments in leadership products using IDM 2.0 should help drive improved competitive positioning and financial performance once end market demand rebounds.

Source: Intel Reports Second-Quarter 2023 Financial Results (www.intc.com) >>

Part 3：Intel FY2023 Q4 Earnings Report Forecast & Preview

1. Intel FY2023 Q4 Forecast By Third Party Analyst Rating, December 4th

Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 28 third-party financial analysts, INTC Stock has been given a Hold rating. Analysts forecast an average stock price of $37.260 (Average) for the next 12 months.

- Third Party Analyst rating: Hold

- Intel Price Target: $37.260

- Forecast of FY2023 Q4 EPS: $0.209

- Forecast of FY2023 Q4 Revenue: $15.1B

- Forecast of FY2023 Q4 EBIT: $2.1B

Source: https://www.benzinga.com/quote/INTC/analyst-ratings

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Intel Forecast By Technical Analysis, December 4th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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