Oppenheimer Remains Perform On Intel As It Kicked Off Semiconductor Earnings Season


In a research report released Wednesday, Oppenheimer analyst Rick Schafer reiterated a Perform rating on Intel (NASDAQ:INTC), following the company’s third-quarter earnings results, posting sales/EPS of $14.6B/$0.66. No price target was given.

Schafer noted, “Mgmt guided 4Q up 1% Q/Q to $14.7B, just ahead of consensus $14.5B. PCG and DCG continue to drive strength while MCG remains a material drag. GM of 65% missed expectations by 100bp and should tick down another 100bp in 4Q. INTC repurchased $4.2B in stock during the quarter, leaving ~75% of its $20B authorization still in play. PC appears to be stabilizing after several years of decline, and mgmt believes inventory levels are okay. INTC’s pay-to-play strategy in MCG appears to be widening the gap between top-line growth and bottomline dollars near term, a dynamic we see for the foreseeable future.”

The analyst added, “Mgmt guided 4Q up 1% Q/Q to $14.7B, just ahead of consensus $14.5B. PCG and DCG continue to drive strength while MCG remains a material drag. GM of 65% missed expectations by 100bp and should tick down another 100bp in 4Q. INTC repurchased $4.2B in stock during the quarter, leaving ~75% of its $20B authorization still in play. PC appears to be stabilizing after several years of decline, and mgmt believes inventory levels are okay. INTC’s pay-to-play strategy in MCG appears to be widening the gap between top-line growth and bottomline dollars near term, a dynamic we see for the foreseeable future.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 1.4% and a 35.1% success rate. Schafer is ranked #1570 out of 3332 analysts.

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