Intel Corporation (NASDAQ:INTC) shares are trading lower Friday. The company reported fourth-quarter financial results on Thursday after the market closed and issued first-quarter adjusted earnings per share guidance below estimates.
Fourth-Quarter Results Beat Expectations
Intel reported adjusted earnings per share of 15 cents, beating the consensus estimate of 8 cents. In addition, the company reported revenue of $13.67 billion, beating the consensus estimate of $13.37 billion.
CEO Lip-Bu Tan said the company made progress on its strategy and highlighted the introduction of its first products built on Intel 18A process technology. CFO David Zinsner added that Intel exceeded fourth-quarter expectations despite industry-wide supply shortages, while demand fundamentals across core markets remain healthy.
First-Quarter Earnings Per Share Outlook Comes in Below Consensus
The company sees revenue of $11.70 billion to $12.70 billion, versus the consensus estimate of $12.49 billion. Furthermore, the company anticipates adjusted earnings per share of 0 cents, versus the consensus estimate of 5 cents.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Needham analyst N. Quinn Bolton reiterated a Hold rating on Intel.
- Benchmark analyst Cody Acree maintained a Buy rating on Intel and raised the price target from $50 to $57.
- Rosenblatt analyst Kevin Cassidy maintained a Sell rating on Intel and raised the price target from $25 to $30.
Technical Analysis Of Intel
Currently, Intel is trading 9.3% above its 20-day simple moving average (SMA) and 28.4% above its 100-day SMA, indicating that the longer-term uptrend remains intact despite the current pullback. Over the past 12 months, shares have increased 151.83% and are positioned closer to their 52-week highs than lows, suggesting strong overall performance.
The RSI is at 76.74, indicating that the stock is in overbought territory, while the MACD is above its signal line, suggesting bullish momentum. This combination of an overbought RSI and a bullish MACD indicates that while the stock may be experiencing a pullback, there is still underlying strength.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Intel, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 97.31) — Stock is outperforming the broader market.
- Value: Neutral (Score: 50.67) — Trading at a fair valuation relative to peers.
The Verdict: Intel’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. However, the neutral value score suggests that while the stock is performing well, it is not necessarily a bargain at current levels.
INTC Price Action: At the time of writing, Intel shares are trading 16.15% lower at $45.55, according to data from Benzinga Pro.
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