Oppenheimer Maintains Perform on Intel

Oppenheimer is out with its report today on Intel INTC, maintaining Perform. In a note to clients, Oppenheimer writes, "INTC reported solid 2Q revenues/EPS of $13.03B (+1% Q/Q)/$0.54 (tax-aided) vs. consensus $12.83B/$0.51. Results were again driven by Sandy Bridge and emerging market strength, with higher ASPs providing top-line growth, despite a 'seasonal' downtick in units. We note that 2Q results included a full quarter of Infineon/McAfee contribution for $1B vs. the prior partial quarter's revenues of $0.5B. 3Q guidance of $14.1B (+7% Q/Q) compares well vs. Street's $13.46B, and implies near-normal seasonality in its core business, but off of a higher base. With Sandy Bridge mix improvement less obvious in 2H, we anticipate heightened risk to 3Q numbers, as supply chain inventory builds. As such, we remain on the sidelines." At the time of posting, shares of INTC were trading pre-market at $22.45, down 2.35% from Wednesday's close.