Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Semiconductor producer Intel (INTC - Analyst Report), reported earnings after the bell, posting an EPS of $0.39 and revenues of $12.8 billion. The EPS was in-line with the Zacks Consensus Estimate, but revenues were just below expectations of $12.88 billion.  

While Intel met on EPS, the continued decline in revenues is a significant issue for the street.  Moreover, the company changed its full year expectations from single digit growth to approximately flat growth year on year.  This downgrade in expectations coupled with a continued weakness in Component orders, Notebook ODM shipments, Motherboard shipments, and the decline in global PC units has the street concerned about future growth expectations.  

On the positive, CAPEX estimations for the remainder of the year will decline by $1.0 billion to $11.0 billion (from $12.0 billion).  Moreover, Intel decreased its expectations of Gross margins by 1% (to 59% down from prior expectations of 60%).   Finally, the company also downgraded their estimations of R&D plus MG&A expenditures by $200 million.  

In afterhours trading, INTC has declined over 2%, suggesting the street is still very cautious about their potential for growth admits this global decline in semiconductors, and complementary products.  Given the revenues miss (for the second consecutive quarter), and the downgrade of future growth expectations, we should see Intel remain under pressure for the remainder of the year.  

Both Advanced Micro Devices (AMD - Analyst Report) and Microsoft Corp (MSFT - Analyst Report) post earnings Thursday July 18 after the closing bell.  

Zacks will post a detailed report on INTC’s earnings tomorrow morning. 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E-HOUSE CHIN EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTL CONS AI ICAGY 33.30 +5.38%