Intel (INTC) shares are down almost 10% in pre-open trading Friday following returns, which a few analysts called “low quality” and led at least one analyst to downgrade shares to its lowest rating. A host of other analysts throughout Wall Street dropped their price targets and demolished estimates.
Intel reported third-quarter earnings of $18.3 billion, above $18.2 billion market consensus, but dropped 4% year-over-year. The data-centric returns dropped as much as 10% while non-GAAP EPS came in at $1.11, in line with market hopes.
Intel’s free cash flow stood at $15.1 billion at the end of the quarter while the tech behemoth paid $4.2 billion in dividends. Intel also stated that NAND sales to Sk Hynix for $9 billion will go ahead next year.