Intel: third-quarter results surprise on the downside
(CercleFinance.com) - Intel shares took a hit on Friday, down over 10% in early morning trading, as the US chipmaker's lackluster results pressured the stock.
The Santa Clara, California-based company said third-quarter earnings per share (EPS) was 1.02 dollar, down 25% year-on-year, on revenue that fell by 4% to 18.3 billion dollars.
Many analysts considered the quarterly report to be "disappointing."
"We previewed Intel's earnings as a beat and raise," said Credit Suisse. "We were disappointed," the broker added, cutting its target price to 65 dollars from 70 dollars previously.
Other investors pointed to "very weak" margins, as gross margin fell to 54.8% in the past quarter, while the company estimated a margin of about 57%.
"We believe data center results and margin weakness were the primary factors weighing on the stock," Wedbush Securities added.
Copyright (c) 2020 CercleFinance.com. All rights reserved.