Intel (NASDAQ:INTC) Releases Earnings Results, Beats Expectations By $0.11 EPS

Intel (NASDAQ:INTC) issued its earnings results 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. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%. The company had revenue of $16.51 billion for the quarter, compared to the consensus estimate of $16.54 billion.

Intel Stock Performance

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

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Bank of America lowered their price target on Intel from $160.00 to $145.00 and set a “buy” rating for the company in a research report on Wednesday, August 12th. The Goldman Sachs Group initiated coverage on shares of Intel in a research report on Monday, October 19th. They set a “neutral” rating for the company. Morgan Stanley set a $85.00 price target on Intel in a report on Monday, October 19th. Wells Fargo & Company raised their target price on Intel from $110.00 to $120.00 and gave the stock an “equal weight” rating in a research note on Friday, July 24th. Finally, Stifel Nicolaus lowered their price objective on shares of Intel from $120.00 to $110.00 and set a “hold” rating for the company in a research report on Friday, July 24th. Two investment 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 issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $108.23.

Key Stories Impacting Intel

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

Insider Activity

In other news, CEO Lip Bu Tan bought 105,263 shares of Intel stock in a transaction dated Tuesday, August 11th. The stock was bought at an average price 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 of the company’s stock, valued at approximately $124,893,555. The trade was a 8.70% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.05% of the company’s stock.

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.