Intel Corporation (NASDAQ:INTC) is a Santa Clara, California based American multinational semiconductor chip maker known for making personal computers (PCs). While Intel is the biggest maker of chips for this part of the information-consuming world, they have struggled to enter the smartphone, tablet, and wearables market. However, the technology company recently released their latest quarterly report on July 15 and their results showed a lot of promise.
During their Q2 results, Intel reported $0.55 earnings per share, beating analysts’ consensus estimate of $0.52 by $0.03. During the same quarter last year, the company reported $0.39 earnings per share. Intel had a profit of $13.83 million for the quarter, compared to analysts’ consensus estimate of $13.68 million. The technology giant’s quarterly proceeds were up 8.0% on a year-over-year basis. On average, analysts’ expect that Intel will post $2.03 earnings per share for the current fiscal quarter.
Although Intel Corporation (NASDAQ:INTC) has struggled with the smartphone, tablet, and wearables market, the company is starting to dabble and explore more into those fields. In fact, the company’s net income increased 40% in their most recent quarter, giving room for Intel to expand into those markets. Brian Krzanich, Intel’s chief executive noted, “All of our products are becoming more personal, more mobile, more connected….We don’t go into businesses to lose money.”
Shares of Intel Corporation (NASDAQ:INTC) opened at $33.31 on Wednesday, July 16. The technology company 1-year high of $34.74 and a 1-year low of $21.89. The stock’s daily moving average is $33.98 and has a 50-day moving average of $29.54. The market cap for Intel is $172.49 billion and its P/E ratio is 18.54.
On July 16, Stifel Nicolaus analyst Kevin Cassidy reiterated a BUY rating for Intel and raised his price target from $31 to $36. He explained, “Looking out to the September quarter, demand is expected to return to a seasonal up 4% q/q growth and gross margin is expected to soar to a near four-year high 66% as the company continues to wring out costs from its 22nm manufacturing process.” He continued, “Other positives include Grantley production launch set for the September quarter, 14nm Broadwell CPUs fully qualified, Intel-based tablet units tracking 40mn by year end and a new $20bn share repurchase program.” Cassidy has a +44.0% average return on all stocks and an 88% success rate in making recommendations. He also has a +19.4% average return on Intel stock.
On the other hand, on July 16 Goldman Sachs analyst James Covello maintained a SELL rating for Intel Corporation (NASDAQ:INTC), but raised his price target from $18 to $20. Covello has a -1.5% average return on all stocks and a 47% success rate in making recommendations. He also has a -20.6% average return on Intel stock.
These two analysts have offered completely opposite advice whether to add Intel to your portfolio. Who recommendation do you trust?
Carly Forster writes about stock market news. She can be reached at [email protected]