Intel drops as analysts cut estimates following management commentary
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Intel (NASDAQ:INTC) shares fell on Wednesday as several analysts cut their earnings estimates after management of the chipmaker appeared to "talk down the quarter," citing worsening conditions.
Citi analyst Christopher Danely, who rates Intel (INTC) shares neutral with a $45 price target, lowered 2022 sales and earnings per share estimates to $71.9B and $2.33, down from a prior outlook of $74.4B and $2.63 per share. The firm maintained its 2023 and 2024, estimates, though. 
Danely added he expects Intel (INTC) "to negatively pre-announce or miss [second quarter] guidance" after comments made by Intel (INTC) management insinuated "circumstances are worse than expected during the quarter." The commentary cited reduced inventory levels at customers and delays as China emerges from its COVID-related lockdowns.
Intel (INTC) shares fell nearly 3% to $42.30 in premarket trading on Wednesday.
SMBC Nikko Securities America analyst Srini Pajjuri maintained the firm's outperform rating on Intel (INTC), but cut the price target on shares to $54 from $62 while also cutting 2022 full-year earnings per share estimates to $3.40 from $3.63, citing recent comments from Dell (DELL) and HP (HPQ), as well as the management commentary at the conference. 
In addition to the full-year earnings cut, Pajjuri lowered his revenue forecast for the second quarter to $17.6B from $18B and earnings per share estimates to $0.65, down from $0.70. 
He also lowered full-year 2022 revenue estimates to $73.8B, down from a prior outlook of $76B.
"In particular, management indicated that the three headwinds that impacted its original guidance (match set issue, customer inventory reductions in PC, and China lockdowns) are all tracking worse than expected," Pajjuri wrote in a note to clients. 
"The company's decision not to preannounce the quarter suggests that the impact may be more [third-quarter/second-half] weighted," Pajjuri added.
Last month, Citi said Intel (INTC) and Advanced Micro Devices (AMD) could both be impacted by a weakened PC market, as notebook shipments came in below estimates for the fourth month in a row.