Intel (INTC) CFO Smith Discusses Yearly Growth After Mixed Q2 Report on CNBC

Intel (INTC) CFO Stacy Smith told CNBC yesterday that the company's mixed earnings will be made up in the 2016 third and fourth quarters.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Intel (INTC) - Get Report CFO Stacy Smith discussed how the chip maker plans to accelerate growth through the rest of the year, after the company reported mixed 2016 second quarter results, on CNBC's "Closing Bell" yesterday.

"We have insight into what we think some of the cloud customers are going to buy," Smith said.

Momentum is expected to pick up in Intel's data center market, "particularly in the cloud," as new products are estimated to be released sometime this year, he explained.

"We think (these products will) give us more seasonal growth in Q3 and Q4," Smith stated.

Yesterday, Intel reported second quarter earnings of 59 cents per share, higher than analysts' estimates of 53 cents per share. The company posted revenue of $13.53 billion, slightly lower than Wall Street expectations of $13.54 billion.

Intel's gross margins came in at 58.9%, missing analysts' predictions of 60.9% for the recent quarter.

Shares of Intel are falling by 4.33% to $34.15 early Thursday morning.

Separately, TheStreet Ratings rated Intel as a "buy" with a score of B+.

This is driven by some important positives, which can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and increase in net income. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: INTC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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