Intel (INTC) stock is bouncing between positive and negative territory Friday as Wall Street weighs the embattled chipmaker's top- and bottom-line beat for its fourth quarter against a weaker-than-expected outlook for its first quarter.
In the three months ending December 28, Intel's revenue decreased 7.4% year over year to $14.3 billion. Its earnings per share (EPS) slumped 75.9% from the year-ago period to 13 cents.
"The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance," said Intel interim co-CEO and CEO of Intel Products Michelle Johnston Holthaus in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Holthaus added that Intel's "renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers."
The results beat analyst' expectations. Wall Street was anticipating revenue of $13.8 billion and earnings of 12 cents per share, according to CNBC.
For the first quarter of its new fiscal year, Intel said it expects revenue in the range of $11.7 billion to $12.7 billion and earnings of approximately zero cents per share. This is well below the $12.9 billion in revenue and 9 cents per share in earnings analysts are calling for.
"Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics," said Intel interim co-CEO and Chief Financial Officer David Zinsner in a statement. "We will remain highly focused on execution to build on our progress and unlock value."
David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, says for him, the person who will be tapped as Intel's new CEO is more important than this print. "At the end of the day, it's hard to get a new direction for the firm if we don't know who is at the helm," he notes.
Is Intel stock a buy, sell or hold?
Intel's woes both on and off the price charts have been widely discussed across Wall Street. As for its share price, the former Dow Jones stock is down 53% over the past 12 months vs the S&P 500's 24% gain. Unsurprisingly, analysts are firmly on the sidelines when it comes to the semiconductor stock.
According to S&P Global Market Intelligence, the average analyst target price for INTC stock is $22.55, representing implied upside of nearly 14% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm Oppenheimer is one of those with a Perform rating (equivalent to a Hold) on the large-cap stock.
"Intel remains largely tied to PC growth, and our relatively bearish stance reflects our belief that the PC market has begun a secular decline,”" says Oppenheimer analyst Rick Schafer. "We remain constructive on the data center outlook for now but remain cautious of PC unit growth and associated revenue growth."
Related Content
- Visa Stock Rises on Strong Earnings, Bullish Outlook
- If You'd Put $1,000 Into Intel Stock 20 Years Ago, Here's What You'd Have Today
- Stock Picks That Billionaires Love
-
Inherited a House? Here's How to Decide What to Do With ItWhen you inherit a property, the decision to keep, rent, or sell can feel overwhelming, especially when emotions are involved. Here's what you need to consider.
-
I own 2 homes, but have 3 kids. Can my estate plan make it fair?We ask estate planning attorneys for guidance.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every AgeStrategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert GuideFor dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's PlanBeing nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff NoiseMarkets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Dividend Increases: 7 Stocks With Rising PayoutsWhile dividend growth has been slowing, certain stocks have raised their dividend payouts. These are some selections.
-
Key to Financial Peace of Mind: Think 'What's Next?' Rather Than 'What If?'Even if you've hit your magic number for retirement, it's hard to stop worrying about money. Giving it a clear purpose is one way to reduce financial anxiety.
-
Three Estate Planning Documents a Business Owner Can't Afford to SkipA business owner's estate plan should protect the company and its employees as well as the entrepreneur's heirs. These three documents are critical.
-
Stock Market Today: Trump's Copper Comments Cause a StirMarkets remain resilient and monetary policy makers stand fast against a rising tide of new terms of trade, including around copper.
