Intel (INTC, $36.31) disappoints on Q2 revenue and full-year outlook
Intel reported its second quarterly earnings that heavily fell short of analysts’ expectations. The tech giant’s outlook for the full-year is also weaker than the Street estimates.
Adjusted earnings came in at 29 cents per share, well below the 70 cents per share expected by analysts polled by Refinitiv.
Revenue decreased 22% from the year-ago quarter to $15.32 billion. It fell short of analysts' expectations of $17.92 billion -- the 14% miss is the company’s largest since 1999, according to Refinitiv data. It has a $454 million net loss as of the quarter’s end, compared with net income of $5 billion in the year-ago quarter.
CEO Pat Gelsinger attributed the weak performance primarily to the “sudden and rapid decline in economic activity” but also mentioned the company’s internal execution issues in areas like product design, and the ramp of AXG [Accelerated Computing Systems and Graphics Group] offerings.
For the third quarter, Intel is expecting 35 cents in adjusted earnings per share, much lower than the 86 cents that analysts polled by Refinitiv expected. The company offered its guidance on revenue at $15 billion to $16 billion, vs. analysts’ $18.62 billion.
Looking further ahead, Intel lowered its full-year outlook on adjusted earnings to $2.30 per share (vs. $3.60 in prior guidance from 3 months ago). It predicts revenue in the range of $65 billion to $68 billion, vs. previous expectation of $76.0 billion in revenue. Analysts polled by Refinitiv were expecting $74.34 billion in revenue.
Momentum Indicator for INTC turns positive, indicating new upward trend
INTC saw its Momentum Indicator move above the 0 level on May 09, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned positive. In of the 93 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where INTC's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for INTC just turned positive on April 24, 2025. Looking at past instances where INTC's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
INTC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
INTC moved below its 50-day moving average on April 04, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for INTC crossed bearishly below the 50-day moving average on April 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INTC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for INTC entered a downward trend on April 17, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. INTC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.937) is normal, around the industry mean (9.655). P/E Ratio (97.750) is within average values for comparable stocks, (72.838). Projected Growth (PEG Ratio) (1.359) is also within normal values, averaging (2.176). Dividend Yield (0.012) settles around the average of (0.022) among similar stocks. P/S Ratio (1.739) is also within normal values, averaging (54.993).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. INTC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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a manufacturer of computer components and related products
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