Intel Just Announced Q2 Guidance Below Estimates: Why The Stock Is Tumbling
Intel Corporation's shares fell 6.29% to $20.14 after the company announced Q2 guidance that missed analysts' estimates. Intel expects a loss of 32 cents per share, compared to the expected loss of 16 cents, and projected sales between $11.20 billion and $12.40 billion, below the $12.84 billion estimate. CFO David Zinsner cited macroeconomic uncertainty as a factor in the lower outlook. Analyst Kevin Cassidy maintained a Sell rating and reduced the price target from $18 to $14.
Intel Corporation INTC shares are trading lower Friday after the company issued second-quarter guidance that fell short of estimates in its earnings report Thursday after the market closed.
The Details: Intel expects a loss of 32 cents per share, versus analysts’ estimate of a loss of 16 cents per share. In addition, the company sees sales from $11.20 billion to $12.40 billion, versus analysts’ estimate of $12.84 billion.
The company attributed the lower outlook to macroeconomic uncertainty.
David Zinsner, Intel CFO, said, “The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook. We are taking a disciplined and prudent approach to support continued investment in our core products and foundry businesses while maximizing operational cost savings and capital efficiency.”
Following the earnings report, Rosenblatt analyst Kevin Cassidy maintained a Sell rating on Intel and lowered the price target from $18 to $14.
See Also: Goldman Sachs Upgrades Charles Schwab To Buy: ‘One Of The Best Earnings Growth Outlooks,’ Analyst Says
INTC Price Action: At the time of publication, Intel shares are trading 6.29% lower at $20.14, according to data from Benzinga Pro.
Image: via Shutterstock
