Technology giant Intel’s (NASDAQ: INTC) shares are trending over 5% higher despite a weak outlook. The company cut its FY2022 outlook much below analysts’ expectations, citing ongoing macro challenges. Investors cheered the company’s cost-cutting initiatives worth $10 billion to be achieved by 2025.
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A Snapshot of Intel’s Q3 Results
Adjusted earnings of $0.59 per share surpassed the consensus estimate of $0.34 per share but declined 59% year-over-year due to lower revenues and margins.
Meanwhile, revenue declined 20% to $15.3 billion, reflecting lower revenue from the Client Computing and Datacenter and AI business segments. The Client Computing segment revenues were negatively impacted by lower demand for personal computer (PC) chips.
Based on ongoing macro headwinds, Intel lowered its FY2022 outlook. The company now expects adjusted EPS of $1.95 ($2.30 guided earlier) and revenue in the range of $63 billion to $64 billion ($65 billion – $68 billion guided previously).
Is INTC a Buy, Sell or Hold?
On TipRanks, Intel stock has received four Buy, 14 Hold, and 11 Sell recommendations for a Hold consensus rating. Intel’s average price forecast of $33 implies 25.6% upside potential.
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