
Intel (INTC) Stock Slumps in After-Hours Trading on Mixed Q2 Results
NEW YORK (TheStreet) -- Shares of Intel (INTC) - Get Report are retreating 3% to $34.62 in after-hours trading Wednesday after the company reported solid earnings, but slightly lower-than-expected revenue for the 2016 second quarter.
After today's market close, the Santa Clara, CA-based chipmaker posted adjusted earnings of 59 cents per share, surpassing analysts' estimates of 53 cents per share.
Revenue for the period was $13.53 billion, while analysts were projecting revenue of $13.54 billion.
Client computing segment revenue fell 3% to $7.3 billion year-over-year, while its data center group revenue was up 5% to $4 billion from last year.
Analysts were expecting data center revenue of $4.16 billion, CNBC.com said.
CEO Brian Krzanich said Intel's restructuring initiative is "solidly on-track."
Intel is working to reposition itself as data centers and Internet of Things are becoming the company's primary profit-growth drivers, CNBC.com noted.
"We're gaining momentum heading into the second half. While we remain cautious on the PC market, we're forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions," Krzanich added.
For the third quarter, Intel sees revenue of $14.9 billion, higher than analysts' estimates of $14.63 billion.
About 37.86 million of the company's shares changed hands today compared to its average volume of 23.33 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths 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.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, 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.
You can view the full analysis from the report here: INTC










