Intel Q4 Earnings Beat Expectations but Guidance Falls Short
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Source: NASDAQ.COM
- Earnings Beat: Intel's Q4 report exceeded expectations, yet management's warning of 'acute internal supply constraints' led to future sales and earnings guidance falling significantly short of analyst forecasts, resulting in a 5.7% drop in stock price.
- Capacity Issues: CFO David Zinsner acknowledged that despite operating near full capacity, Intel struggles to meet current demand, highlighting major hurdles in manufacturing efficiency that could impact the company's long-term strategy.
- Stock Volatility: Following the earnings release, Intel's stock plummeted nearly 20% on Friday and continued to slide on Monday, reflecting investor disappointment in the company's future outlook, even as the S&P 500 gained 0.5%.
- Investor Confidence Shaken: While Intel's technology is improving, manufacturing efficiency issues have undermined investor confidence in its future performance, leading the analyst team to exclude it from their current list of top investment stocks.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 39.30 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 42.490
Low
20.00
Averages
39.30
High
52.00
Current: 42.490
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
