Intel Shares Fall on Disappointing Q4 Earnings (INTC)

Intel Shares Fall on Disappointing Q4 Earnings (INTC)


After the bell on Thursday Intel Corporation (INTC) released its fourth quarter earnings report, posting a profit that fell compared to the same period a year ago. The company has struggled as PC sales have declined.

The Santa Clara, California-based company said its fourth quarter net income was $2.5 billion, or 48 cents per share, down -26.4% from the $3.4 billion, or 64 cents per share, earned in the same period a year ago.

Analysts were expecting Intel to earn 45 cents per share. However, the company’s better than expected EPS was partially due to a lower effective tax rate than previously expected. Intel’s effective tax rate was 23% versus the previous forecast of 27%.

For the quarter, Intel’s revenue was $13.5 billion, down -2.8% from $13.9 billion in revenue a year earlier. Wall Street analysts were expected revenue of $13.53 billion.

Looking forward, INTC expects first quarter revenue to come in at $12.7 billion, a drop from $12.9 billion in the year ago period. Analysts are expecting revenue of $12.9 billion.

Intel has been struggling to adapt as PC sales have declined. The company has been left behind as competitors have adapted to make products for smartphones and tablets.

Intel shares were down $1.28, or -5.64%, during pre-market trading on Friday. The stock is down -9.79% over the past year.

The Bottom Line
Shares of Intel Corp (INTC) have a 3.97% dividend yield, based on last night’s closing stock price of $22.68. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $23-$24 price levels.

Intel Corporation (INTC) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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