Intel (NASDAQ:INTC) stock surged more than 7% in pre-market Friday after the company reported Q2 results and offered a more positive-than-expected outlook for this quarter.
EPS came in at $0.13, better than the consensus estimate that was looking for a loss per share of $0.04. Revenue fell 15% year-over-year to $12.9 billion, but still beating the consensus estimate of $12.09B.
Client Computing (CCG) was down 12% year-over-year to $6.8B, Data Center and AI (DCAI) was down 15% to $4.0B, Network (LON:NETW) and Edge (NEX) was down 38% to $1.4B, Mobileye was down 1% to $454 million, while Intel Foundry Services (IFS) was up 307% to $232M.
“Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps,” said CEO Pat Gelsinger.
For Q3/23, the company expects revenue in the range of $12.9-13.9B, compared to the consensus estimate of $13.23B. The adjusted EPS is seen at $0.20, again better than the analyst expectations for earnings of $0.13 per share.
Bernstein analysts lifted the price target on INTC stock by $2 to $34 per share reflecting "quite strong" results.
"We admit to warming (very slightly) to it, but there is more than enough here to keep us sidelined for now," they commented on the INTC stock.
Barclays analysts also raised the price target by $2, although they also remain quite cautious on the stock.
"[Intel] beat low hurdle on a quicker PC recovery but see little catalyst for growth and a hard transition roadmap to navigate."
Additional reporting by Senad Karaahmetovic