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.
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.
