Cantor Slashes Intel Price Target to $20 Ahead of Earnings Announcement

Intel (NASDAQ:INTC) issued a positive revenue forecast for the third quarter following better-than-expected Q2 sales, but flagged significant write-downs and cost-cutting measures that weighed on earnings. Shares fell nearly 9% intra-day Friday.

For Q2, Intel reported an adjusted loss of $0.10 per share on revenue of $12.86 billion, topping the $11.95 billion revenue estimate but missing the expected EPS of $0.01. The earnings miss was largely due to $800 million in impairment charges and $200 million in one-time costs, which together reduced EPS by $0.20.

As part of a cost-saving initiative, the company announced it would halt chip factory projects in Germany and Poland, and slow construction of its Ohio facility to better match demand. Intel also said it plans to cut 15% of its workforce, targeting a headcount of 75,000 by the end of 2025.

For Q3, Intel projected breakeven adjusted EPS on revenue of $12.6 billion to $13.6 billion. Analysts had forecast $0.04 in EPS and $12.66 billion in revenue.

Intel (NASDAQ:INTC) beat Wall Street estimates for first-quarter earnings and revenue, but a downbeat forecast for the current quarter and cost-cutting signals triggered a sharp sell-off, sending shares down more than 7% in premarket trading today.

The chipmaker posted adjusted earnings of $0.13 per share, surpassing expectations for breakeven results. Revenue was flat year-over-year at $12.7 billion, slightly above the $12.25 billion consensus.

However, the optimism faded quickly as Intel projected second-quarter revenue in the range of $11.2 billion to $12.4 billion—below analysts’ expectations of $12.8 billion. The company also guided for breakeven earnings next quarter, citing uncertainty around tariffs, regulatory risks, and competitive pressure across several business lines.

To boost long-term execution, Intel announced a series of structural changes, including management streamlining aimed at faster decision-making and improved efficiency. It lowered its 2025 operating expense target to $17 billion and set a new goal of $16 billion for 2026. Gross capital expenditures for 2025 were also revised down to $18 billion from the previously planned $20 billion.

This marks the first earnings report under new CEO Lip-Bu Tan, who is now tasked with steering Intel through a challenging competitive landscape and accelerating its efforts in AI innovation.

While Intel’s cost discipline and operational realignment may strengthen its foundation over time, the market’s reaction reflects immediate concerns over growth headwinds and the pace of its turnaround strategy.

Intel (NASDAQ:INTC) beat Wall Street estimates for first-quarter earnings and revenue, but a downbeat forecast for the current quarter and cost-cutting signals triggered a sharp sell-off, sending shares down more than 7% in premarket trading today.

The chipmaker posted adjusted earnings of $0.13 per share, surpassing expectations for breakeven results. Revenue was flat year-over-year at $12.7 billion, slightly above the $12.25 billion consensus.

However, the optimism faded quickly as Intel projected second-quarter revenue in the range of $11.2 billion to $12.4 billion—below analysts’ expectations of $12.8 billion. The company also guided for breakeven earnings next quarter, citing uncertainty around tariffs, regulatory risks, and competitive pressure across several business lines.

To boost long-term execution, Intel announced a series of structural changes, including management streamlining aimed at faster decision-making and improved efficiency. It lowered its 2025 operating expense target to $17 billion and set a new goal of $16 billion for 2026. Gross capital expenditures for 2025 were also revised down to $18 billion from the previously planned $20 billion.

This marks the first earnings report under new CEO Lip-Bu Tan, who is now tasked with steering Intel through a challenging competitive landscape and accelerating its efforts in AI innovation.

While Intel’s cost discipline and operational realignment may strengthen its foundation over time, the market’s reaction reflects immediate concerns over growth headwinds and the pace of its turnaround strategy.

Cantor Fitzgerald trimmed its price target on Intel (NASDAQ:INTC) to $20 from $29 while maintaining a Neutral rating, signaling caution ahead of the company’s upcoming earnings on Thursday and leadership transition. This will mark the first earnings call under new CEO Lip-Bu Tan, and the firm anticipates Intel may use the moment to reset expectations amid a challenging macro backdrop.

Analysts expect results to land in line but foresee weaker guidance as the company repositions under new leadership. While no formal calendar-year 2025 guidance is expected, investors will look for clarity on potential structural changes, including developments around Intel’s Foundry business and any joint venture announcements.

Cantor believes aggressive cost-cutting could follow and sees upcoming events—like the April 29 Intel Foundry Day—as key catalysts. Although the long-term sum-of-the-parts valuation remains at $26, a steep road ahead keeps the firm on the sidelines.

Intel Corporation (NASDAQ:INTC) delivered better-than-expected fourth-quarter results, yet its cautious guidance for the first quarter of 2025 raised concerns about future growth. Despite the mixed sentiment, shares gained more than 1% in pre-market trading on Friday.

The semiconductor giant reported adjusted earnings per share of $0.13, narrowly surpassing analyst expectations of $0.12. Revenue for the quarter stood at $14.26 billion, exceeding the consensus estimate of $13.83 billion, though marking a 7% decline year-over-year. Full-year 2024 revenue came in at $53.1 billion, reflecting a 2% annual decline.

While the earnings beat provided some relief, Intel’s forecast for the first quarter of 2025 fell short of market expectations. The company anticipates revenue between $11.7 billion and $12.7 billion, trailing analysts’ projection of $12.86 billion. Additionally, earnings per share are expected to range from a loss of $0.27 to break-even, well below the anticipated $0.09.

Gross margin guidance also disappointed, with Intel forecasting an adjusted margin of 36%, falling short of the 39% analysts had predicted. Interim co-CEO Michelle Johnston Holthaus acknowledged the company’s progress in surpassing internal expectations for revenue, margins, and earnings, emphasizing Intel’s commitment to refining its product portfolio and advancing its process roadmap. However, the company pointed to seasonal trends, macroeconomic headwinds, ongoing inventory adjustments, and heightened competition as factors weighing on its near-term outlook.

Looking ahead, Intel remains focused on cost reductions and operational efficiency to drive long-term profitability and shareholder value, even as it faces increasing challenges in the evolving semiconductor landscape.

Intel Corporation (NASDAQ:INTC) delivered better-than-expected fourth-quarter results, yet its cautious guidance for the first quarter of 2025 raised concerns about future growth. Despite the mixed sentiment, shares gained more than 1% in pre-market trading on Friday.

The semiconductor giant reported adjusted earnings per share of $0.13, narrowly surpassing analyst expectations of $0.12. Revenue for the quarter stood at $14.26 billion, exceeding the consensus estimate of $13.83 billion, though marking a 7% decline year-over-year. Full-year 2024 revenue came in at $53.1 billion, reflecting a 2% annual decline.

While the earnings beat provided some relief, Intel’s forecast for the first quarter of 2025 fell short of market expectations. The company anticipates revenue between $11.7 billion and $12.7 billion, trailing analysts’ projection of $12.86 billion. Additionally, earnings per share are expected to range from a loss of $0.27 to break-even, well below the anticipated $0.09.

Gross margin guidance also disappointed, with Intel forecasting an adjusted margin of 36%, falling short of the 39% analysts had predicted. Interim co-CEO Michelle Johnston Holthaus acknowledged the company’s progress in surpassing internal expectations for revenue, margins, and earnings, emphasizing Intel’s commitment to refining its product portfolio and advancing its process roadmap. However, the company pointed to seasonal trends, macroeconomic headwinds, ongoing inventory adjustments, and heightened competition as factors weighing on its near-term outlook.

Looking ahead, Intel remains focused on cost reductions and operational efficiency to drive long-term profitability and shareholder value, even as it faces increasing challenges in the evolving semiconductor landscape.