Intel (NASDAQ:INTC) saw its shares tumble in after-hours trading after the chip company projected its second-quarter revenue to fall between $12.5 billion and $13.5 billion. This missed analyst predictions of $13.61 billion. The firm also expects to earn just $0.10 per share versus the $0.25 per share that was anticipated by Wall Street.
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In the first quarter, the company posted adjusted earnings of $0.18 per share on revenue of $12.7 billion. For reference, analysts had expected $0.14 per share on sales of $12.78 billion.
Notable growth came from Intel’s Client Computing segment, as revenue rose 31% to $7.5 billion. On the other hand, revenue from the Mobileye unit fell by 48% year-over-year to $239 million, while the Foundry segment’s revenue dropped 10% to $4.4 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 22% rally in its share price over the past year, the average INTC price target of $44.17 per share implies 26.07% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
INTC also pays out a quarterly dividend, which yields 1.46%. This is above the technology sector (XLK) average of 1.025%.
Is INTC the Right Stock to Buy for Passive Income?
Before you hurry to invest in INTC, think about the following:
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