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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
-
I'm a Financial Adviser: Here's How a Three-Part Retirement 'Crash Plan' Can Prepare You for Market TurbulenceHaving a plan ready to go when markets get wild — covering how you'll handle income, rebalancing and taxes — can be the ultimate retirement secret weapon.
-
Investors Buy the Nasdaq's Big Dip: Stock Market TodayStocks are up and down again to end an up-and-down week ahead of big earnings announcements and the eventual return of regular economic data flow.
-
Here's How to Plan This Year's Roth Conversion, From a Wealth ManagerWhile time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy.
-
Four Times You Need a Second Opinion on Your Financial PlanIs your financial plan fit for purpose — or is your adviser peddling an outdated strategy? When you see these red flags, it's time for a second opinion.Evan
-
'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five ScenariosInsurance companies care about 'fault' in more ways than you think — from payment mishaps to your neighbor's landscaping — so it's on you to manage the risks.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are five we like.
