Are Analysts Giving Intel Enough Credit After Earnings?

By Chris Lange Updated Jan 30, 2:03PM EST · Published Oct 25, 1:35PM EDT

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Are Analysts Giving Intel Enough Credit After Earnings? — © Thinkstock

Intel Corp. (NASDAQ: INTC | INTC Price Prediction) released its most recent quarterly results after markets closed Thursday. Overall, this was a record quarter for Intel, but it’s hard to believe considering what a majority of analysts are saying. Despite most analysts being sidelined on the stock, they did give Intel credit for the quarter by raising their targets.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the fact.

The semiconductor giant posted $1.42 in earnings per share (EPS) and a record $19.2 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.24 in EPS and $18.05 billion in revenue. In the third quarter of last year, Intel said it had EPS of $1.40 on revenue of $19.16 billion.

The PC-centric business (CCG) was down 5% in the third quarter. Collectively, Intel’s data-centric businesses achieved record revenue in the third quarter, up 6% year over year. The Data Center Group (DCG) delivered record revenue driven by a strong mix of high-performance Intel Xeon processors and growth in every segment of the business. The communications service provider segment grew 11% while the cloud segment returned to growth, up 3%, and enterprise and government revenue grew 1%.

The Internet of Things Group (IOTG) also achieved record revenue, up 9% on strength in retail and transportation. Mobileye achieved record revenue, up 20% year over year on increasing ADAS adoption. Intel’s memory business (NSG) also achieved record revenue, up 19%. PSG third-quarter revenue was up 2%.

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Looking ahead to the fourth quarter of 2019, the company expects to see EPS of $1.24 and revenues near $19.2 billion. Consensus estimates call for $1.21 in EPS and $18.82 billion in revenue for the quarter.

Here’s what analysts had to say about Intel:

Wedbush reiterated a Sell rating with a $46 price target.
Goldman Sachs reiterated a Sell rating and a $48 price target.
Sanford Bernstein reiterated a Sell rating with a $42 price target.
Barclays reiterated an Underweight rating and raised its target to $42 from $40.
BMO reiterated a Market Perform rating and raised its price target from $50 to $53.
RBC reiterated an Underperform rating and raised its price target to $48 from $47.
Morgan Stanley reiterated it as Overweight and raised its price target to $65 from $64.
Wells Fargo reiterated a Market Perform rating and raised its target to $58 from $55.
Robert Baird reiterated an Outperform rating and raised its target from $65 to $70.
SunTrust Banks reiterated it as Hold and raised its target price to $60 from $58.
Susquehanna reiterated a Neutral rating and raised its price target from $52 to $55.
JPMorgan reiterated an Overweight rating and raised its price target to $68 from $64.
Credit Suisse reiterated an Outperform rating and raised its price target to $65 from $58.
Northland Securities upgraded it to Outperform from Market Perform with a $69 target.
Cowen reiterated a Market Perform rating and raised its price target to $53 from $50.

Shares of Intel traded up over 7% to $56.19 on Friday, in a 52-week range of $42.86 to $59.59. The consensus price target is $53.13.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.