Intel (NASDAQ:INTC) is in the news Friday after its stock took a beating following its most recent earnings report.
The earnings report for Intel was bad news despite it reporting adjusted earnings per share of $1.11 on revenue of $18.33 billion. These beat out Wall Street’s estimates of $1.10 per share and revenue of $18.22 billion. Even so, they are down 22% and 4%, respectively, year-over-year.
The biggest problem for Intel during the quarter was its data businesses. Overall, the company notes that its data-centric operations were down 10% from the same time last year. For comparison, its PC-centric business was up 1%.
Intel CEO Bob Swan said this in the earnings news release.
Our teams delivered solid third-quarter results that exceeded our expectations despite pandemic-related impacts in significant portions of the business. Nine months into 2020, we’re forecasting growth and another record year, even as we manage through massive demand shifts and economic uncertainty.
Adding to Intel’s troubles come a negative take from Bank of America Merrill Lynch analyst Vivek Arya. He downgraded the stock from a “neutral” rating to a new “underperform” rating today. The analyst also dropped his price target for INTC stock from $60 per share to $45 per share.
Arya’s bearish stance on Intel comes from concerns over its next-generation of processors. The company is having trouble nailing the 10nm process and the analyst believes those problems could get worse with the jump to 7nm processors, reports MarketWatch.
INTC stock was down 11.1% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
