Intel (NASDAQ:INTC) Estimates Slides at Bernstein, Investors Couldn’t Care Less
Intel's earnings estimates were lowered by Bernstein due to the loss of the Huawei export license, causing a drop in revenue and earnings per share projections. However, investors seemed unfazed as Intel's stock price remained steady. Additionally, Intel introduced a new font, Intel One Mono, aimed at aiding visually impaired coders. Wall Street analysts have a hold consensus rating on INTC stock with a price target of $39.80 per share, implying a potential upside of 27.87%.
Normally when an analyst turns on a stock, that’s a sign to get out. But for Intel (INTC) it proved quite the opposite. A new analyst report out on Intel left investors feeling oddly possible, and though Bernstein lowered estimates on Intel’s earnings, the news was good enough for investors. In fact, Intel was up fractionally in Friday afternoon’s trading.
Bernstein, via analysts Stacy Rasgon, Alrick Shaw, and Akhilesh Kumawat, released a note saying that the loss of the Huawei export license into China would, ultimately, hurt its second quarter numbers, which are due out next week. That in turn prompted the team to drop Intel’s earnings per share estimates from $0.10 to $0.08 per share. Revenue also took a cut, going from $13 billion to $12.74 billion.
Third quarter estimates also took a hit therein, as the earnings per share figure was lowered from $0.33 to $0.30, and revenue slipped from $14.7 billion to $14.4 billion. Rasgon also noted that Intel was basically in “…no man’s land to us…,” with CPUs basically overshipping for the last several months. That could prove a drag on future earnings figures as well.
Backing Up Visually Impaired Coders
That by itself may be unsettling, but Intel also offered a release that may have picked up hope. Intel rolled out a new font, known as Intel One Mono. The product of VML, a marketing agency, and Frere-Jones Type, a type design practice, it’s intended to help those with visual impairments better see the text and use it to code.
Most typefaces, reports note, tend to stick to standard round or standard square shapes. But that can make one character look a lot like another when dealing with the visually impaired. The new version, which features exaggerated rounding, helps letters, numbers, and similar figures look more distinctive and more readily used in coding.
Is Intel a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 13 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 8.1% loss in its share price over the past year, the average INTC price target of $39.80 per share implies 27.87% upside potential.
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