Intel (INTC) earnings preview: as strong as ever

12:01 pm ET, 24 Jul 2018

Intel Corporation (INTC) is expected to report earnings on July 26 after market close.  The report will be for the fiscal quarter ending June 2018. Shares are trading at 51.64, down -0.52%.

What are INTC earnings expectations?  What news should investors be aware of?

Intel announced CEO Brian Krzanich has resigned following a prior consensual relationship with an Intel employee, which violates Intel’s "non-fraternization policy" for all managers. CFO Bob Swan will step in as interim CEO while the board of directors conducts a search for a permanent CEO that includes both internal and external candidates. 

The company also noted its second-quarter sales would be about $16.91 billion, above its guidance of $16.3 billion. Despite a declining PC market, Intel’s scattershot approach is proving to be effective in addressing challenges in computing (artificial intelligence and cloud), connectivity (5G), and memory (3D NAND and 3D XPoint). Its string of acquisitions--Altera, Mobileye, Nervana, and Movidius--has enabled new growth vectors for Intel to tackle while enhancing the capabilities of its incumbent leadership in client computing and data center.

As cloud computing continues to garner significant investment, Intel's data center group will be an indirect beneficiary. The Altera acquisition will help Intel maintain its recent growth trajectory in the space, as customers increasingly seek out customized server solutions that use field-programmable gate array chips.

Intel Corporation has a history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Beat analyst EPS estimates by 4 cents ($.72 actuals vs. $.68 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 21 cents ($1.01 actuals vs. $.80 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 22 cents ($1.08 actuals vs. $.86 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 16 cents ($.87 actuals vs. $.71 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 38% year-over-year to $.99, while revenue is expected to grow 15% year-over-year to $16.91 billion.  

Intel Corporation (INTC) average analyst price target ($60.22) is 16.62% above its current price ($51.64).

For the latest price and information on Intel Corporation, please visit Finstead and search for "INTC price" or "INTC news".

QUALCOMM (QCOM) earnings preview: tepid revenue projections

12:57 am ET, 23 Jul 2018

QUALCOMM (QCOM) is expected to report earnings on July 25 after market close.  The report will be for the fiscal quarter ending June 2018.  Shares are trading at 58.35, down -0.07%.

What are QCOM earnings expectations?  What news will the market be watching out for?  

Analysts expect Qualcomm’s licensing business to show a solid growth, because of increased 3G and 4G device adoption. However, recent government investigations into the business model and the Apple lawsuit against Qualcomm’s business practices have increased the possibility of negative effects on royalty revenue. Qualcomm may be able to withstand these inquiries and maintain adequate royalty rates.

Qualcomm is a steward of the digital communication technology known as CDMA, which is commonly referred to as a third-generation, or 3G, wireless communications standard. 3G allows devices to send/receive voice signals and wireless data, and has played a major role in the proliferation of mobile devices. Qualcomm’s treasure trove of patents (with a monopoly in 3G and a significant portion of 4G) allows the firm to charge device-makers a royalty fee as a percentage of the price of each 3G and 4G device sold (as most 4G phones are backward-compatible with 3G).

The firm also designs chips used in smartphones. This part of the business does not have nearly as strong of a competitive advantage as licensing, nor is it as profitable. Qualcomm’s high-end Snapdragon application processors were once commonplace in high-end smartphones, but the shift toward in-house chips has threatened Qualcomm’s position. The major blow occurred when Samsung utilized internally developed chips in its Galaxy S6 device. 

While Qualcomm has reclaimed some business back at Samsung, there will be fewer lucrative opportunities going forward, owing to competition and OEMs that build their own chips. The firm historically also had a competitive edge in baseband chips, which are critical to devices’ inherent ubiquitous connectivity. Qualcomm had been the sole baseband supplier at Apple for multiple iterations of the iPhone, but Intel has since won a portion of this business. 

QUALCOMM Incorporated has a history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Beat analyst EPS estimates by 2 cents ($.83 actuals vs. $.81 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 11 cents ($.92 actuals vs. $.81 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 8 cents ($.98 actuals vs. $.90 forecast) in FQ1’18;
  • Beat analyst EPS estimates by 10 cents ($.80 actuals vs. $.70 forecast) in FQ2’18.

For FQ3’18, EPS is expected to decline by 14% year-over-year to $.71, while revenue is expected to decline 2% year-over-year to $5.2 billion.  

Over the last month, QUALCOMM (QCOM) returned -2.52%. 

QUALCOMM (QCOM) average analyst price target ($63.41) is 8.67% above its current price ($58.35).

For the latest price and information on QUALCOMM, please visit Finstead and search for "QCOM price" or "QCOM news".

Micron Technology (MU): upside ahead?

1:48 pm ET, 17 May 2018

Micron Technology (NASDAQ: MU) is down almost 3% in today's trading.  Is today a good buying opportunity?  Let us look at the fundamentals.  

Micron is a significant supplier and manufacturer of memory and storage used electronic devices ranging from personal computers to smartphones. The firm had a market share of 20% of total memory/storage shipments. 

In 2017, DRAM accounted for roughly 64% of total revenue, with NAND making up the remainder. 

Micron operates in the highly competitive space, so its long-term profitability is limited.

There is little or no product differentiation in memory storage, with average selling prices normally tracking downward over time. This ultimately leads to major price competition between the industry leader Samsung and second-tier companies such as Micron and Hynix. Smaller competitors tend to establish joint ventures in an attempt to come up with superior memory solutions. 

Through the partnership with Intel, Micron has developed next-generation 3D NAND as well as the upcoming 3D XPoint technology, which will allow the company to weather economic and cyclical downturns.

Per Finstead research, out of 31 analysts covering the stock, 25 rate it a strong buy.  

The Micron stock price target upside is 8.59% (type "MU upside" on Finstead). 

General Electric (NYSE:GE): What You Need To Know

1:58 pm ET, 12 Apr 2018

The General Electric (NYSE: GE) stock has been going through a rough period lately.  Year to date, this stock declined 25% (visit Finstead and type “GE YTD return” to get the latest info).  GE also underperformed the market last year. 

What do you need to know about this company now?

GE's ability to raise new capital might be negatively affected by its announcement about the restatement of 2016 and 2017 results. The borrowing cost that would be portrayed in the restatement will have a bearish impact on fundraising. 

GE declared a $6.2 Billion charge on its fourth-quarter earnings in 2018 because of GE Capital, its financial services subsidiary. This amount is currently being investigated by the US Securities and Exchange Commission (SEC).

GE intends to have its core divisions separated, i.e., healthcare, aviation, and power. It hinted at shedding more than $20 Billion non-core assets.  Consequently, GE is planning to add $15 Billion to its capital reserves in the coming 7 years.

What are the chances of the General Electric stock recovering?  Per Finstead Research, the company’s average price target is $18.  It has an upside of about 36%.

GE stock has a fairly low valuation. GE's P/E ratio is only ahead of that of Whirlpool (WHR) and Intel (INTC).

Intel and Apple: What's Next?

3:13 pm ET, 03 Apr 2018

Intel’s (NASDAQ:INTC) stock price witnessed a big decline yesterday after Bloomberg reported that Apple would not use Intel chips for its Mac computers. As a part of the multi-step transition, Intel processors will be replaced by native Apple components starting 2020.

Apple did not respond to the ‘news’ and Intel denied acknowledging this as well.  Apart from Intel, its rivals such as Qualcomm, Broadcom, and Arms supply Apple with chips and processors. These are used for various purposes such as artificial intelligence and augmented reality — in addition to in-house chips for Macs, Apple Watches, AirPods, and Beats.

If Apple opts for its own chips instead of other manufacturers’, it will eliminate the critical dependency on the new chip models. It could soon stand out from the competition as the only PC and electronics maker utilizing its own processors.

The Kalamata code is in its initial developmental stage. It is a part of the larger strategy that aims at enabling Apple devices (Macs, iPhones, and iPads) to work in a similar and coordinated way.

This step is a major setback for Intel. The partnership between the two companies has caused the revival of Apple’s Macs and it also helped Intel get to a leading position in the electronics marketplace.

Intel's ability to produce powerful processors compared to its competitors through the use of the latest manufacturing technology has cemented its #1 position on the market.

Will the INTC stock price recover?  Per Finstead research, Intel's average analyst price target is $52, which is close to its current price. The upside is very small.

Intel has a fairly low valuation compared to its peers and lags behind its rivals QCOMCHKPTXNAMD, and NVDA.

Investors should consider a couple of points to estimate the impact of Bloomberg’s claim on Intel’s business going forward:

  • Bloomberg indicated that Apple makes up only 5% of Intel’s total revenue 
  • Apple held 7.6% market share for PC units in the most recent quarter, based on Gartner research.

Perhaps you should wait and see at this critical juncture until things fully play out.  

Lam Research (LRCX): Can The Stock Price Run Sustain?

2:18 pm ET, 22 Mar 2018

LRCX is down 3% today, but it witnessed a 19% stock price hike in the past 12 weeks. The wafer fabrication company has succeeded in keeping up the interest of its shareholders since the past year.

Why are investors bullish about LRCX?

The products manufactured by LRCX are viewed as the essentials for the semiconductor industry. 

Semiconductor equipment companies should show double-digit growth year-on-year.

Companies with exposure to memory chip production should benefit from continued growth in memory demand.

In the coming 5 years, LRCX has devised a plan to return 50% of free cash flow to stockholders and raise its quarterly dividend to $1.10 per share (a 120% increase from June 2018).

Besides this, a $2 billion share repurchase program will start in the next 12-18 months.

What do the bears say?

While the semiconductor equipment industry is forecast to grow double-digit in 2018, growth will only be a quarter of the growth exhibited in 2017.

According to Finstead Research, LRCX’s average price target is $246.  There is a 10% upside (go to Finstead.com and type “LRCX upside” to get the latest figures).

The valuation of LRCX is lowest among its peers.

LRCX has a high Short Share of Float compared to the average for the industry, which is an indication of high volatility in the upcoming period.

Intel Corporation (INTC) Stock Guide

Updated at: 1:34 am ET, 18 Sep 2020

Before we start: if you're looking for INTC stock price, you can quickly find it out by visiting Finny and typing "INTC quote". If you're looking for a quick scoop on INTC stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "INTC". You'll get all this info in one place. Or you can just type "INTC news" to get the latest stock news.

Looking to buy or sell Intel Corporation (INTC)? Interested in getting the full scoop on INTC, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this INTC stock guide, we'll address key questions about INTC, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are INTC earnings?
2. What is INTC dividend?
3. What is INTC dividend yield?
4. What is INTC stock forecast (i.e., prediction)?
5. INTC buy or sell? What is INTC Finny Score?
6. What are the reasons to buy INTC? Why should I buy INTC stock?
7. What are the reasons to sell INTC? Why should I sell INTC stock?
8. What are INTC key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are INTC earnings?

INTC trailing 12-month earnings per share (EPS) is $5.44.

2. What is INTC dividend?

INTC forward dividend is $1.32.

3. What is INTC dividend yield?

INTC forward dividend yield is 2.59%.

Analyst Predictions

4. What is INTC stock forecast (i.e., prediction)?

Based on INTC analyst price targets, INTC stock forecast is $56.50 (for a year from now). That means the average analyst price target for INTC stock is $56.50. The prediction is based on 41 analyst estimates.

The low price target for INTC is $42.00, while the high price target is $82.00.

INTC analyst rating is Buy.

Analysis

5. INTC buy or sell? What is INTC Finny Score?

#{finnyScore:90}Our quantitative analysis shows 9 reasons to buy and 1 reason to sell INTC, resulting in Finny Score of 90.

6. What are the reasons to buy INTC? Why should I buy INTC stock?

Here are the reasons to buy INTC stock:

  • Intel is the largest semiconductor company in the world. The firm has sustained its position at the forefront of technology by investing heavily in R&D, and this trend should continue.
  • The firm holds a roughly four-fifths share in the microprocessor market.
  • The data center group has indirectly benefited from the proliferation of mobile devices. Server processor sales will be the main driver of growth in the near future.
  • Management strategy has evolved with the changing times. The primary focus area at the moment is the data center and cloud, where Intel is doing everything possible to maintain its market share and profitability. Supporting this is continued investment in the Internet of Things (IoT) and non volatile memory/storage (memory is closely associated with processing speeds and it also helps increase penetration at customers).
  • We are particularly optimistic about the data center business. The drive to lower-cost computing devices is increasing the pressure on servers that are taking the load off these devices. As more information in various structures and formats are increasingly stored in the cloud, there is demand for a new breed of chips that are more efficient in terms of cost and energy but may not pack in quite as much compute power as in the past.
  • Intel’s non-volatile memory business is poised to take off. While NVM has fairly broad application across markets, the company is primarily targeting enterprise/data center customers to drive penetration of this high-margin segment. The company tied up with Micron to develop new memory technologies back in 2006.
  • Intel is the unquestioned leader in the microprocessor market, remaining number one in terms of market share and product performance. The company has focused on selling not just separate components but platforms optimized for specific markets, whether mobile, enterprise, or the digital home. Intel’s innovative efforts are speeding up the entire computer, and not just the central processing unit (CPU).
  • Intel's acquisition of Israel-based Mobileye, an autonomous vehicle technology provider is significantly positive in our view. The acquisition will help the company rapidly penetrate the autonomous car technology market, currently dominated by the likes of NVIDIA and Qualcomm. With the buyout, Intel will now have access to Mobileye’s technologies related to cameras, in-car networking, sensor-chips, roadway mapping, cloud software, machine learning and data management.
  • INTC quarterly revenue growth was 19.50%, higher than the industry and sector average revenue growth (0.39% and 0.89%, respectively). See INTC revenue growth chart.
  • INTC forward dividend yield is 2.59%, higher than the industry (0.61%) and sector (0.26%) forward dividend yields. See INTC forward dividend chart.
  • INTC forward P/E ratio is 10.78, which is low compared to its industry peers’ P/E ratios. See INTC forward P/E ratio chart.
  • INTC Price/Book ratio is 2.63, which is low compared to its industry peers’ P/B ratios. See INTC forward Price/Book ratio chart.
  • INTC Price/Sales ratio is 2.74, which is low compared to its industry peers’ P/S ratios. See INTC forward Price/Sales ratio chart.
  • INTC average analyst rating is Buy. See INTC analyst rating chart.
  • INTC average analyst price target ($56.50) is above its current price ($50.32). See INTC price target chart.
  • INTC cash to debt ratio is 0.67, higher than the average industry (0.33) and sector (0.17) cash to debt ratio. See INTC cash to debt chart.
  • INTC Enterprise Value/Revenue multiple is 2.90, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See INTC Enterprise Value/Revenue chart.

7. What are the reasons to sell INTC? Why should I sell INTC stock?

Let's look at the reasons to sell INTC stock (i.e., the bear case):

  • PC industry growth has slowed from the heady rates of the 1990s. As a result, Intel's opportunities to expand may be limited.
  • Intel must successfully maintain its technology lead in the computer processor market. Any missteps by the firm could trigger market share loss to AMD.
  • The inability for Intel to break into the smartphone market at a reasonable level is cause for concern, as the PC continues to be replaced by mobile devices.
  • Intel is seeing a growing competitive threat in the server, storage and networking markets. The server segment has always generated strong margins and Intel’s powerful architecture has always been considered supreme. But ARM is posing a challenge in the fast-growing microserver segment and its designs have seen adopters at several Intel competitors.
  • Intel could see increasing competition from IBM in chip architecture. For one, IBM has showcased a 7nm chip design that it expects will be in volume production by 2020. While Intel could have a 7nm chip itself by then, the IBM design will put other options in the market, which can destroy its process lead and therefore impact its profitability on that generation of chips.
  • A relatively smaller concern is the growing cannibalization of its Xeon chips with its new and faster SoCs with FPGA accelerators. It is a fact that Intel gets to sell fewer Xeon chips for every integrated device it sells in the data center. But because the cloud is expanding very rapidly, the strong demand and increased penetration and TAM for Intel (because it is now selling a broader range of products to address a bigger market) is likely resulting in a net positive.
  • INTC profitability is declining. The YoY profit margin change was -2.07 percentage points. See INTC profitability chart.

Key Stats

8. What are INTC key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for INTC:

Metrics INTC
Price $49.93
Average Price Target / Upside $56.50 / 13.16%
Average Analyst Rating Hold
Forward Dividend Yield 2.59%
Industry Semiconductors
Sector Technology
Number of Employees 107,400
Market Cap $216.01B
Forward P/E Ratio 10.78
Price/Book Ratio 2.74
Revenue (TTM) $78.96B
YoY Quarterly Revenue Growth 19.50%
Profit Margin 29.97%

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