Semiconductor company Intel (INTC) has reported mixed second-quarter financial results but raised its forward guidance, sending its shares up about 1% in after-hours trading.
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The maker of microchips and processors announced an earnings per share (EPS) loss of $0.10, which missed Wall Street targets that called for a profit of $0.01. Revenue in the April through June period totaled $12.60 billion, which was ahead of the consensus forecast of $11.92 billion.
In terms of guidance, Intel said that it expects revenue for the current third quarter of $13.10 billion at the midpoint of its range, versus the average analyst estimate of $12.65 billion. The chipmaker said that it expects to break even on earnings while analysts were looking for EPS of $0.04.
Intel’s earnings per share. Source: Main Street Data
Cutting Back Construction
Intel’s new CEO Lip-Bu Tan used the Q2 print to announce significant cuts in chip factory construction. Specifically, Intel canceled planned chip fabrication projects in Germany and Poland, and said that it will consolidate its testing and assembly operations in Vietnam and Malaysia.
Tan also said that the company had completed the majority of its planned layoffs, amounting to 15% of its global workforce, and that it will end the year with 75,000 employees. Intel previously said it was trying to reduce operating expenses by $17 billion. The earnings report was Intel’s second since Tan took over as CEO in March of this year. INTC stock has gained 13% so far in 2025.
Is INTC Stock a Buy?
Intel’s stock has a consensus Hold rating among 28 Wall Street analysts. That rating is based on one Buy, 23 Hold, and four Sell recommendations issued in the last three months. The average INTC price target of $22.28 implies 1.55% downside from current levels. These ratings are likely to change after the company’s financial results.
