Technology
Investors Not Satisfied Despite Decent Earnings From Intel
Published:
Last Updated:
Intel Corp. (NASDAQ: INTC) reported second-quarter financial results after the markets closed on Wednesday. This company is far and away a leader in the tech sector. Investors did not initially have a favorable reaction to these earnings despite being more or less in line.
The company said that it had $0.59 in earnings per share (EPS) on $13.5 billion in revenue. There were consensus estimates from Thomson Reuters that called for $0.53 in EPS on $13.54 billion in revenue. The same period from last year had $0.55 in EPS on $13.2 billion in revenue.
In terms of guidance for the third quarter, the company expects to have a gross margin of 62% on revenues of $14.9 billion, versus consensus estimates that call for $0.64 in EPS on $14.63 billion in revenue.
Intel detailed its business segment revenues as:
Brian Krzanich, Intel CEO, commented:
Second-quarter revenue matched our outlook and profitability was better than we expected. In addition, our restructuring initiative to accelerate Intel’s transformation is solidly on-track. We’re gaining momentum heading into the second half. While we remain cautious on the PC market, we’re forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions.
On the books, cash, cash equivalents, and short-term investments totaled $8.2 billion at the end of the quarter, versus $18.0 billion at the end of 2015.
Shares of Intel closed Wednesday at $35.69, with a consensus analyst price target of $36.22 and a 52-week trading range of $24.87 to $35.93. Following the release of the earnings report the stock was down 2.8% at $34.70 in the after-hours trading session.
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.