Intel Stock: Chipmaker Tops Lowered Targets But Slashes Outlook

Chipmaker Intel (INTC) late Thursday beat lowered expectations for the third quarter but slashed its outlook for the fourth quarter. Intel stock rose in extended trading.

X

The Santa Clara, Calif.-based company earned an adjusted 59 cents a share on sales of $15.34 billion in the September quarter. Analysts polled by FactSet had expected Intel earnings of 34 cents a share on sales of $15.31 billion. On a year-over-year basis, Intel earnings fell 59% while sales declined 20%.

Intel’s PC chip sales dropped 17% to $8.1 billion in the third quarter. Its data center chip sales sank 27% to $4.2 billion. However, its network products unit saw sales rise 14% to $2.3 billion.

For the current quarter, Intel forecasts adjusted earnings of 20 cents a share on sales of $14.5 billion. Wall Street had predicted Intel earnings of 70 cents a share on sales of $16.3 billion in the fourth quarter.

Intel Stock Rises After Report

In after-hours trading on the stock market today, Intel stock jumped 4.2% to 27.36. During the regular session Thursday, Intel stock fell 3.5% to close at 26.27.

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” Chief Executive Pat Gelsinger said in a news release.

INTC Stock Has Low Relative Strength Rating

In July, Intel stock plummeted after the company badly missed expectations for the second quarter and cut its outlook for the full year.

Intel stock ranks No. 21 out of 33 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a poor IBD Composite Rating of 15 out of 99.

Further, Intel stock has an IBD Relative Strength Rating of 12 out of 99. That puts it in the bottom 12% of stocks for performance over the past 12 months.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

Tracking-Chip Maker Impinj Crushes Third-Quarter Targets, Sending PI Stock Soaring

Wolfspeed Stock Tumbles After Chipmaker Whiffs On Sales, Earnings Outlook

Texas Instruments Beats Third-Quarter Views But Guides Lower

Learn How To Time The Market With IBD’s ETF Market Strategy

See Stocks On The List Of Leaders Near A Buy Point