Intel (INTC) stock is one of the best Dow Jones stocks on Friday, second only to Amazon.com (AMZN) which is rallying on its solid earnings report. The positive price action comes after the chipmaker reported mixed results for its third quarter but issued a strong outlook for the fourth quarter.
In the three months ended September 28, Intel's revenue decreased 6.3% year over year to $13.3 billion. It reported a net loss of 46 cents per share compared to net earnings of 41 cents per share in the year-ago period.
"Our Q3 results underscore the solid progress we are making against the plan we outlined last quarter to reduce costs, simplify our portfolio and improve organizational efficiency," said Intel CEO Pat Gelsinger in a statement. "We delivered revenue above the midpoint of our guidance, and are acting with urgency to position the business for sustainable value creation moving forward."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $13 billion and a net loss of 2 cents per share, according to MarketWatch.
However, sentiment turned positive toward Intel when the company provided its outlook for the fourth quarter. Intel said it expects to achieve revenue in the range of $13.3 billion to $14.3 billion and earnings of approximately 12 cents per share, which came in ahead of expectations.
Wall Street is forecasting revenue of $13.7 billion and earnings of 8 cents per share for Intel's fourth quarter, according to Yahoo Finance.
"The actions we took this quarter position us for improved profitability and enhanced liquidity as we continue to execute our strategy," Gelsinger said. "We are encouraged by improved underlying trends, reflected in our Q4 guidance."
Is Intel stock a buy, sell or hold?
Intel's troubles have stretched to the price charts, as well. Shares of the large-cap stock are down 53% for the year to date on a total return basis (price change plus dividends), making it the worst Dow stock of 2024 so far.
And Wall Street is on the sidelines when it comes Intel. According to S&P Global Market Intelligence, the average analyst target price for INTC stock is $24.72, representing implied upside of 6% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm Needham is one of those with a Hold rating on INTC stock.
While Intel's third-quarter revenue results were better than expected, accelerated foundry development is weighing on near-term margins, says Needham analyst Quinn Bolton.
"We rate INTC as a Hold due to its elevated valuation, falling revenue estimates, increasing competition (in core and non-core markets), and distant Intel Foundry Services revenue contributions, which we believe are all setting up for a more difficult road ahead," the analyst adds.
Related Content
-
10 States Where Retirees Get Smaller Social Security RaisesGeography doesn't dictate how much Social Security you will receive. However, employment opportunities, pay scale and lifetime earnings impact your monthly benefit greatly.
-
401(k) and IRA Contribution Limit Changes for 2025: What to Know NowRetirement IRS inflation adjustments typically mean higher contribution limits for the new year.
-
Jobs Growth Stalls Amid Hurricanes and Strikes: What the Experts Are SayingJobs Report A dismal October payrolls print supports the case for a slow and steady pace of rate cuts.
-
Amazon Leads Dow Jones Stocks After Stellar Earnings ReportAmazon stock is higher Friday after the e-commerce and cloud giant reported strong Q3 earnings and Wall Street sees even more upside ahead. Here's why.
-
Apple Stock Slips After Earnings. Wall Street Isn't WorriedApple stock is trading lower Friday despite the iPhone maker beating expectations for its fiscal fourth quarter, but analysts are still bullish.
-
Here's Why You Shouldn't Put All Your Money Into Roth IRAsConverting a tax-deferred account to a Roth can be a good strategy for lowering future taxes, but moving all of your money at once is typically not recommended.
-
Three Advantages of These Underrated Accounts for RetireesUsing taxable accounts for some retirement savings in the 10 years before and after retirement can give you greater flexibility and benefit your heirs.
-
Six Steps to Take if Your Insurer Sends You a Non-Renewal LetterFirst and foremost, don't procrastinate. Let your insurer know you plan to fix whatever the issue is and then actually follow through on fixing it.
-
Stock Market Today: Stocks Struggle After Meta, Microsoft EarningsAll three major indexes closed lower on Thursday, making for a grim Halloween.
-
Is Uber Stock a Buy, Hold or Sell After Earnings?Uber stock is sinking Thursday after the ride-hailing firm came up short of a key Q3 metric, but analysts have yet to adjust their ratings. Here's what you need to know.
