Intel (NASDAQ:INTC) Issues Quarterly Earnings Results

Key Points

• Intel beat earnings expectations: Third-quarter EPS came in at $0.52 versus the $0.41 consensus, while revenue rose 21% year over year to approximately $16.5 billion, roughly in line with forecasts.
• Growth businesses performed strongly, with Data Center and AI revenue up 78% to $7.3 billion and Intel Foundry revenue up 58% to $6.7 billion. However, GAAP net income fell to $3.3 billion from $4.1 billion a year earlier.
• Shares fell 3.6% as the outlook disappointed: Intel forecast fourth-quarter revenue of $15 billion–$16 billion and adjusted EPS of $0.25, below analyst expectations of about $17.3 billion and $0.45, citing continued PC-market weakness.

Intel (NASDAQ:INTC - Get Free Report) issued its quarterly earnings data on Thursday. The chip maker reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.11, FiscalAI reports. The business had revenue of $16.51 billion for the quarter, compared to the consensus estimate of $16.54 billion. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%.

Intel Trading Down 3.6%

Shares of NASDAQ:INTC traded down $3.46 during midday trading on Thursday, hitting $92.07. 116,628,551 shares of the stock were exchanged, compared to its average volume of 115,408,992. The business's 50-day moving average price is $101.65 and its 200 day moving average price is $86.02. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.25 and a current ratio of 1.60. The stock has a market capitalization of $464.40 billion, a price-to-earnings ratio of -43.63, a P/E/G ratio of 9.23 and a beta of 2.22. Intel has a 12 month low of $32.89 and a 12 month high of $142.35.

Analysts Set New Price Targets

A number of brokerages recently issued reports on INTC. Wells Fargo & Company lifted their target price on Intel from $110.00 to $120.00 and gave the stock an "equal weight" rating in a report on Friday, July 24th. TD Cowen reduced their target price on Intel from $115.00 to $95.00 and set a "hold" rating for the company in a report on Monday, October 19th. Weiss Ratings lowered Intel from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, October 23rd. Tigress Financial lifted their price objective on Intel from $118.00 to $145.00 and gave the stock a "buy" rating in a report on Tuesday, September 15th. Finally, Citigroup started coverage on Intel in a research note on Monday, October 19th. They issued an "outperform" rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, twenty-six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $108.23.

Insider Buying and Selling at Intel

In related news, CEO Lip Bu Tan acquired 105,263 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, for a total transaction of $9,999,985.00. Following the purchase, the chief executive officer owned 1,314,669 shares in the company, valued at approximately $124,893,555. The trade was a 8.70% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.05% of the stock is owned by insiders.

Intel News Roundup

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Data Center and AI revenue rose 78% year over year to $7.3 billion, while operating income from the business roughly tripled. Intel Foundry revenue also increased 58% to $6.7 billion, highlighting progress in higher-growth businesses. Intel Server Sales Jump 78%, Q4 Outlook Dims
• Positive Sentiment: Third-quarter revenue increased 21% to approximately $16.5 billion, and reported earnings per share of $0.52 exceeded the consensus estimate of $0.41. Intel also generated $5.1 billion in operating cash flow. Intel Q3 Revenue Rises 21% to $16.5 Billion
• Neutral Sentiment: Intel’s planned $2.3 billion acquisition of quantum-computing software company Classiq could broaden its technology portfolio and support a full-stack quantum strategy, but the deal adds spending and is unlikely to materially improve near-term results. Intel to Acquire Classiq
• Negative Sentiment: Fourth-quarter guidance fell well below Wall Street expectations: Intel projected revenue of $15 billion to $16 billion and adjusted EPS of $0.25, versus analyst expectations of roughly $17.3 billion and $0.45. Management attributed the outlook to continued PC-market weakness and said the slowdown could persist through at least the first half of next year. Intel Stock Plunges as PC Slowdown Drives Weak Guidance
• Negative Sentiment: Third-quarter GAAP net income declined to $3.3 billion from $4.1 billion a year earlier, while GAAP EPS fell to $0.60 from $0.90. A factory explosion in Israel also added an operational risk to an already cautious outlook. Intel Forecast Disappoints as PC Weakness Weighs

About Intel

Intel Corporation NASDAQ: INTC is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.

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