Intel Corporation (NASDAQ:INTC) shares are falling on heavy volume Friday after the company posted worse-than-expected second-quarter results.
The Details:
Intel missed analysts’ expectations with quarterly sales of $12.83 billion, a 0.9% decrease year-over-year and earnings of 2 cents per share.
The company also suspended its quarterly dividend beginning in Q4 and announced a $10 billion cost-reduction plan that it says will include a headcount reduction of greater than 15%. Intel guided for a loss of 3 cents per share in the third quarter.
“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation,” said Pat Gelsinger, Intel CEO.
Analysts React:
Raymond James downgraded Intel from Outperform to Market Perform, and multiple analysts reduced price targets on the stock following the print:
- Truist Securities analyst William Steinmaintained Intel with a Hold and lowered the price target from $33 to $25.
- Susquehanna maintained a Neutral rating and lowered the price target from $35 to $26.
- Morgan Stanley analyst Joseph Mooremaintained an Equal-Weight rating and lowered the price target from $36 to $25.
- Goldman Sachs maintained its Sell rating and lowered the price target from $29 to $22.
- Deutsche Bank maintained Intel with a Hold and lowered the price target from $38 to $27.