Shares of Intel (NASDAQ:INTC) dipped about 2.5% after announcing that CEO Brian Krzanich has resigned after being found in violation of a non-fraternization company policy. CFO Bob Swan is going to take over as interim CEO. The company noted they are conducting a robust CEO search, and while it has a deep management bench, it is unclear if the search is internal only or open to external candidates.
Intel Chairman Andy Bryant commented, “The Board believes strongly in Intel’s strategy and we are confident in Bob Swan’s ability to lead the company as we conduct a robust search for our next CEO. Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel.”
As Interim CEO, Swan will manage operations in close collaboration with Intel’s senior leadership team. Swan has been Intel’s CFO since October 2016 and leads the global finance, IT, and corporate strategy organizations. He previously spent nine years as CFO of eBay Inc. Earlier, he was CFO of Electronic Data Systems Corp and TRW Inc. He has also served as CEO of Webvan Group Inc.
Swan added, “Intel’s transformation to a data-centric company is well under way and our team is producing great products, excellent growth and outstanding financial results. I look forward to Intel continuing to win in the marketplace.”
To the company’s credit, Intel expects to deliver a record second quarter, with revenues of approximately $16.9 billion and non-GAAP EPS of approximately $0.99. With accelerating data-centric revenue, the company is off to an excellent start in the first half of the year and expects 2018 to be another record year. Intel will provide full second quarter results and an updated outlook for the full year on the second quarter earnings call on July 26.
The word on the Street rings largely bullish on the software giant, with TipRanks analytics demonstrating INTC as a Buy. Out of 32 analysts polled in the last 3 months, 21 are bullish on Intel stock, 8 remain sidelined, and 3 are bearish on the stock. With a return potential of nearly 14%, the stock’s consensus target price stands at $59.75.