On CNBC's "Closing Bell," Ed Snyder, managing director at Charter Equity Research gave his opinion about Intel Corporation's INTC earnings report. The company reported better-than-expected earnings on Thursday and the stock traded around 6% higher after hours.
Snyder explained that Intel did well on earnings because its core business wasn't as bad as expected. Its PC business continues to do fairly well as the company released new products which resulted in better revenue and better margins, added Snyder.
See Also: Intel Beats Earnings, Confirms $1B Deal With Apple
The sale of the smartphone modem chip business to Apple Inc. AAPL is a very smart move, thinks Snyder. He believes Intel achieved a very good price because it wouldn't be able to do much with the segment without the smartphone business of its own. It had a huge cost for engineers, which was driving the margins down, explained Snyder.
The good earnings results suggest the stock could end the negative cycle, which could be a sign for the Wall Street analysts to re-rate the stock, concluded Snyder.
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