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.
INTC in downward trend: price dove below 50-day moving average on June 05, 2023
INTC moved below its 50-day moving average on June 05, 2023 date and that indicates a change from an upward trend to a downward trend. In of 43 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Momentum Indicator moved below the 0 level on June 05, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on INTC as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for INTC crossed bearishly below the 50-day moving average on May 17, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 .
INTC broke above its upper Bollinger Band on May 31, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for INTC entered a downward trend on June 05, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where INTC's RSI Indicator exited the oversold zone, of 31 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 May 31, 2023. Looking at past instances where INTC's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
The 50-day moving average for INTC moved above the 200-day moving average on May 04, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (1.270) is normal, around the industry mean (7.053). P/E Ratio (16.010) is within average values for comparable stocks, (54.079). INTC's Projected Growth (PEG Ratio) (9.214) is very high in comparison to the industry average of (2.571). Dividend Yield (0.041) settles around the average of (0.024) among similar stocks. P/S Ratio (2.189) is also within normal values, averaging (11.823).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. INTC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 64, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of computer components and related products
Industry Semiconductors
INTC and
Correlation & Price change
A.I.dvisor indicates that over the last year, INTC has been closely correlated with TXN. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if INTC jumps, then TXN could also see price increases.
| Ticker / NAME | Correlation To INTC | 1D Price Change % | ||
|---|---|---|---|---|
| INTC | 100% | -4.63% | ||
| TXN - INTC | 77% Closely correlated | -2.84% | ||
| SWKS - INTC | 70% Closely correlated | -2.38% | ||
| MCHP - INTC | 67% Closely correlated | -2.50% | ||
| AMAT - INTC | 67% Closely correlated | -0.67% | ||
| COHU - INTC | 66% Closely correlated | -4.26% | ||
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