4 Analyst Takeaways On Intel's Q2 Miss, Guidance Reduction

4 Analyst Takeaways On Intel's Q2 Miss, Guidance Reduction

Intel Corporation INTC reported an earnings miss and announced downbeat guidance.

KeyBanc Capital Markets On Intel: Analyst John Vinh reiterated a Sector Weight rating for the company.

Intel’s second-quarter earnings miss and third-quarter guidance reduction were mainly due to weakness in the PC and data center segments, which faced “demand softness, OEMs inventory digestion, and execution issues," Vinh said in a note.

“Rapid decline in PC demand drove a reset in 2022 expectations,” he added.

Raymond James On Intel: Analyst Melissa Fairbanks reiterated a Market Perform rating for the company.

"While CEO Pat Gelsinger highlighted the signing of the CHIPS Act as a historic day for the semiconductor industry, on the same day, INTC reported a sizeable miss in 2Q, while also taking down full-year guidance,” Fairbanks said in a note.

While industry checks had suggested deteriorating PC trends, the magnitude of Intel’s shortfall in the PC and data center business was “nonetheless surprising,” she added.

Check out other analyst stock ratings.

Rosenblatt Securities On Intel: Analyst Hans Mosesmann maintained a Sell rating while reducing the price target from $40 to $30.

For some reason, the miss was not “negatively pre-announced (a question not answered on the live earnings call),” Mosesmann said in a note. "The single most important dynamic to focus on (beyond the headline macro, inventory, and recession issues), is the 25% sequential miss in data center (DCAI)."

Needham On Intel: Analyst Quinn Bolton reiterated a Buy rating and a price target of $40.

“We are taking a stance by saying that Intel just delivered investors an opportunity to accumulate shares at what will likely be its worst performing quarter for many years to come (though 3Q22 has a chance to match 2Q22),” Bolton wrote in a note.

He recommended investors to buy on share weakness as “risk/reward is highly skewed to the upside over the next several years.”

INTC Price Action: Shares of Intel had declined by 9.93% to $35.76 at the time of publication Friday.

Photo: Wikimedia Commons

Posted In: Hans MosesmannJohn VinhKeyBanc Capital MarketsMelissa FairbanksNeedhamQuinn BoltonRaymond JamesRosenblatt SecuritiesAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading Ideas