Intel (INTC): DCG Continues to Disappoint - Brean Capital

Brean Capital analyst, Mike Burton, noted that Intel (NASDAQ: INTC) reported a mixed Jun-16 quarter as revenues were slightly lower than Street estimates, but the Company beat consensus EPS by $0.06. For the Sep-16Q guidance, the company is guiding revenues up 10% Q/Q, which is better than normal seasonal patterns and higher than consensus revenue estimates. In terms of full year guidance, the company did not change its view that revenue will grow at a mid-single digit Y/Y clip over 2015.

The Jun-16 quarter disappointed the analyst who was waiting for revenue upside from the company’s Data Center business (DCG). He still believes INTC is well positioned for the 2H of 2016 from both a revenue point of view and from an OPEX point of view as we believe the company has OPEX levers to be realized as its restructuring actions start to play out (last quarter the company announced a plan to cut its total workforce by 11%).

The analyst slightly increased CY16E and CY17E EPS, reiterating the Buy rating, and bumping the $36 target price to $38 off of higher market multiples.

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $35.69 yesterday.

You May Also Be Interested In

• Correction: Citi Upgrades Sirius XM Radio (SIRI) to Neutral
• Deutsche Boerse AG (DB1:GR) (DBOEY) PT Lowered to EUR184 at Citi
• Visa (V) stock rises as Q2 earnings, revenue come ahead of estimates