The cocaine nose jobs of Wall Street are expecting the fashion bag maker Intel to have a rotten day tomorrow.
Chipzilla is to announce its third-quarter earnings report and the word on the strasse is that it is going to be down for the third quarter in a row.
Research analyst Deepon Nag at Macquarie Equities Research downgraded Intel stock to neutral from outperform, citing ‘pressure in the core PC market’.
Last week Canaccord Genuity analyst Bobby Burleson lowered his estimates for Intel’s sales and earnings in 2013 and 2014.
According to the US Finance Post, the blame is being attributed to a mythical shift towards smartphones and tablets, along with a more than likely sluggish adoption of Windows 8.
But analysts claim that moves towards cloud computing are also hurting Intel. Cloud computing allows PCs to get by with far less processing power than before.
While Intel does sell chips used in cloud data centres, it is unclear whether the cloud server market can match the volume of the PC market.
According to a Thompson Reuters poll this morning, Wall Street analyst expect Intel to post results of $ .53 per share on sales of $ 13.47 billion for the third quarter.
If you look at the same time last year, this means a nine percent drop in earnings per share on flat sales. This would also be the fourth straight quarter where sales have been flat or down and the sixth straight quarter where EPS has done the same.
What is worse is that Wall Street does not really expect things to improve for Intel. Apparently, analysts think that Intel is struggling to find its role in the post-PC marketplace. Others just think that the IT industry is buggered up by the economy and things will pick up for Intel when companies can afford to splash out on PCs again.