Intel Corp. (NASDAQ: INTC) is set to report its second-quarter financial results after the markets close on Wednesday. Previously, the company reported an inline first quarter and lowered the forward outlook, but analysts like Merrill Lynch stayed positive on the company and still believe that there is solid upside potential for the stock. The Dow and S&P 500 have hit new all-time highs recently, with the help of the tech sector, giving even more credence to what this tech giant has to report on Wednesday.
The consensus estimates are $0.53 in earnings per share (EPS) on $13.54 billion in revenue. In the same period of last year, Intel posted EPS of $0.55 and $13.2 billion in revenue.
Recently, Intel announced a massive restructuring, which also included a large number of layoffs. The company is moving away from its slow-growth businesses and will be using the cash saved to expand its high-growth businesses of data center, Internet of Things and memory, all transformational revenue silos that the Merrill Lynch team is bullish on.
When the company reported its first quarter earnings, it touted its growth in the data center and Internet of Things businesses. The company also believes it has strengths in the memory and programmable solutions markets.
Prior to the release of the earnings report, a few analysts weighed in on Intel:
- Jefferies has a Buy rating with a $42 price target.
- RBC Capital Markets reiterated a Sector Perform rating with a $36 price target.
- Nomura has a Buy rating with a $35 price target.
- Brean Capital reiterated a Buy rating.
- Canaccord Genuity has a Buy rating with a $40 price target.
- Citigroup reiterated a Neutral rating with a $35 price target.
- Cowen reiterated a Market Perform rating with a $36 price target.
- Sanford Bernstein has a Market Perform rating with a $30 price target.
- Mizuho reiterated an Outperform rating.
So far in 2016, Intel has performed more or less in line with the broad markets, with the stock up about 4%. Over the past 52 weeks, the stock is actually up nearly 25%.
Shares of Intel were trading at $35.15 on Wednesday, with a consensus analyst price target of $36.22 and a 52-week trading range of $24.87 to $35.59.
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