Intel Stocks Plummet, Announces Cost Cuts and Gets Downgrades
TapTechNews August 2nd news, today when the US stock market opened, Intel plummeted by more than 28%, creating the largest decline since at least 1982. As of TapTechNews' dispatch, Intel's decline has shrunk to 28% and is trading at $20.92, with a market capitalization of around $93 billion.
Today, Intel announced its fiscal second quarter 2024 earnings report: Revenue was $12.8 billion, a 1% decrease year-on-year; the attributable net loss was $1.6 billion, while the attributable net profit in the same period last year was $1.5 billion, turning from profit to loss year-on-year.
The adjusted attributable net profit not in accordance with US generally accepted accounting principles was $100 million, while the adjusted attributable net profit not in accordance with US generally accepted accounting principles in the same period last year was $500 million, a significant 85% decrease year-on-year.
Intel's adjusted earnings per share and revenue in the second quarter both failed to meet the expectations of Wall Street analysts. The company's outlook for adjusted earnings per share and revenue in the third quarter is also far worse than expected. At the same time, Intel also announced that as part of a $10 billion cost reduction plan, the company will lay off more than 15% of its employees. In addition, S&P also announced that it will include Intel in the credit negative watch list, and other institutions have also lowered Intel's target price or rating:
Morgan Stanley lowered Intel's target price from $36 to $25;
JP Morgan lowered Intel's target price from $35 to $26;
Goldman Sachs lowered Intel's target price from $29 to $22;
Bank of America lowered Intel's target price from $35 to $23;
Bernstein lowered Intel's target price from $35 to $25;
Jefferies lowered Intel's target price from $34 to $28;
HSBC lowered Intel's target price from $35 to $19.8;
TDCOWEN lowered Intel's target price from $35 to $25.
Deutsche Bank lowered Intel's target price from $38 to $27;
RaymondJames lowered Intel's rating to in line with the market.
NewStreetResearch lowered Intel's rating to neutral;
Benchmark lowered Intel's rating to hold.