Analyst Expects Intel (INTC) Q4 Beat but Cautious on Potential Reaction
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Price: $34.50 +0.64%
Rating Summary:
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Tomorrow after the close, Intel Corporation (NASDAQ: INTC) will report Q4 results. Street estimates call for EPS of $0.45 on $13.53 billion in revenue. Analyst at RBC Capital think there is a good chance the chip maker can top estimates, though it may not translate into improved stock performance.
"We believe Intel could post upside on current Street revenue and EPS estimates as the mid-point of sales estimates, or $13.6bil, could represent a low-bar," said analyst Doug Freedman. "However, we still expect that sentiment will remain bearish after the call on lackluster PC demand and risk of slightly elevated inventories."
2013 guidance will be critical for investors, says Freedman.
"We expect the company to guide revenue growth in the low-to-mid-single digits vs. RBCe/+3% and Street/+1.7%. Pro-forma gross margins could be ~60% vs. RBCe/60.8% and Street/58.8%. We highlight that revenue guidance could be less important if mix (increasing Data Center Group) is better-than-expected which would result in higher gross margins."
RBC Capital has a Sector Perform rating on Intel (NASDAQ: INTC) with a price target of $24.00.
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.
Shares of Intel closed at $21.88 yesterday.
"We believe Intel could post upside on current Street revenue and EPS estimates as the mid-point of sales estimates, or $13.6bil, could represent a low-bar," said analyst Doug Freedman. "However, we still expect that sentiment will remain bearish after the call on lackluster PC demand and risk of slightly elevated inventories."
2013 guidance will be critical for investors, says Freedman.
"We expect the company to guide revenue growth in the low-to-mid-single digits vs. RBCe/+3% and Street/+1.7%. Pro-forma gross margins could be ~60% vs. RBCe/60.8% and Street/58.8%. We highlight that revenue guidance could be less important if mix (increasing Data Center Group) is better-than-expected which would result in higher gross margins."
RBC Capital has a Sector Perform rating on Intel (NASDAQ: INTC) with a price target of $24.00.
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.
Shares of Intel closed at $21.88 yesterday.
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