Intel (INTC) Q2 Earnings Preview: No Surprises Should Leave Long-Term Investors Bored But Happy
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Shares of Intel (Nasdaq: INTC) are trading higher ahead of the company's second quarter earnings report, expected after the market closes today. Shares are up about 1.9% to $20.96.
Intel is expected to report EPS of $0.43 on revs of $10.25 billion. Last quarter, Intel reported EPS of $0.43 and revs of $10.3 billion, both beating views. Last year, for Q2, Intel reported EPS of $0.18 and revs of $8 billion, both topping views.
Shares have lost through the quarter, dropping about 12.5% to end at $19.45 on June 30th. The stock is currently trading down about 3% YTD, and carries a $0.1575 quarterly dividend with an annual yield of about 3%.
INTC currently carries a forward P/E of 11.1x, compared with 10.4x at Texas Instruments (NYSE: TXN), and 16x for Advanced Micro Devices (NYSE: AMD).
Data from Bloomberg shows that 38 analysts have a Buy rating on INTC, 14 have a Hold, and suggest to Sell. The analyst price target average is $27.53, with a high of $34 and a low of $19.
Analyst Ratings Through the Quarter
*Not including immediate changes following their Q1 earnings report.
ThinkEquity, in early-May, downgraded INTC from Buy to Hold. Later in the month, they upgraded the stock back up to Buy.
Susquehanna initiated coverage with a Positive rating and $28 price target, seeing potential H210 upside. Later in May, the firm lowered their expectations for INTC based on Eurozone activity.
Stifel Nicolaus resumed coverage on Intel (Nasdaq: INTC) with a Buy rating and $30 price target.
Summary
Piper Jaffray thinks that Intel's report will be relatively flat sequentially, noting "Intel's competitive position is as strong as it has ever been and the company is well- positioned to benefit from a corporate PC upgrade cycle and growth from emerging market consumers." Piper also expects Intel's guidance to "reflect normal seasonality" and sees sales in the range of $10.6 - $11.4 billion. The have an Overweight rating on the shares.
Wedbush has an Outperform rating on the shares, and a price target of $29. The firm expects Q2 revs flat Q/Q, and their checks "checks indicate strong server and notebook shipments along with lean channel inventories." They see Q2 revs of $10.26 billion and an EPS of $0.42.
Auriga lowered their price target on Intel ahead of the results, but kept its Buy rating. The firm sees INTC's Nehalem for server as one of the strongest product cycles in semiconductors, but said PC build plans combined with overly-optimistic consensus numbers temper their enthusiasm.
Intel Corporation is expected to release their Q410 earnings on Tuesday, July 13, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
Intel is expected to report EPS of $0.43 on revs of $10.25 billion. Last quarter, Intel reported EPS of $0.43 and revs of $10.3 billion, both beating views. Last year, for Q2, Intel reported EPS of $0.18 and revs of $8 billion, both topping views.
Shares have lost through the quarter, dropping about 12.5% to end at $19.45 on June 30th. The stock is currently trading down about 3% YTD, and carries a $0.1575 quarterly dividend with an annual yield of about 3%.
INTC currently carries a forward P/E of 11.1x, compared with 10.4x at Texas Instruments (NYSE: TXN), and 16x for Advanced Micro Devices (NYSE: AMD).
Data from Bloomberg shows that 38 analysts have a Buy rating on INTC, 14 have a Hold, and suggest to Sell. The analyst price target average is $27.53, with a high of $34 and a low of $19.
Analyst Ratings Through the Quarter
*Not including immediate changes following their Q1 earnings report.
ThinkEquity, in early-May, downgraded INTC from Buy to Hold. Later in the month, they upgraded the stock back up to Buy.
Susquehanna initiated coverage with a Positive rating and $28 price target, seeing potential H210 upside. Later in May, the firm lowered their expectations for INTC based on Eurozone activity.
Stifel Nicolaus resumed coverage on Intel (Nasdaq: INTC) with a Buy rating and $30 price target.
Summary
Piper Jaffray thinks that Intel's report will be relatively flat sequentially, noting "Intel's competitive position is as strong as it has ever been and the company is well- positioned to benefit from a corporate PC upgrade cycle and growth from emerging market consumers." Piper also expects Intel's guidance to "reflect normal seasonality" and sees sales in the range of $10.6 - $11.4 billion. The have an Overweight rating on the shares.
Wedbush has an Outperform rating on the shares, and a price target of $29. The firm expects Q2 revs flat Q/Q, and their checks "checks indicate strong server and notebook shipments along with lean channel inventories." They see Q2 revs of $10.26 billion and an EPS of $0.42.
Auriga lowered their price target on Intel ahead of the results, but kept its Buy rating. The firm sees INTC's Nehalem for server as one of the strongest product cycles in semiconductors, but said PC build plans combined with overly-optimistic consensus numbers temper their enthusiasm.
Intel Corporation is expected to release their Q410 earnings on Tuesday, July 13, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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