Intel (INTC) saw its shares tumble in after-hours trading after the chip company projected its third-quarter revenue to fall between $12.5 billion and $13.5 billion. This missed analyst predictions of $14.39 billion. The firm also expects to lose $0.03 per share versus the $0.32 per share profit that was anticipated by Wall Street. These results were nothing short of disappointing to investors.
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However, things weren’t much better in the most recent quarter. Indeed, the company posted Q2 adjusted earnings of $0.02 per share on revenue of $12.83 billion. For reference, analysts had expected $0.10 per share on sales of $12.98 billion.
Notable growth came from Intel’s Client Computing segment, as revenue rose 9% to $7.4 billion. This is by far Intel’s largest segment, making up more than half of its revenue, as pictured below. On the other hand, revenue from the Mobileye unit fell by 3% year-over-year to $440 million. Still, the Foundry segment’s revenue rose 4% to $4.3 billion.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 25 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 14% decline in its share price over the past year, the average INTC price target of $40.21 per share implies 37.24% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
