Earnings Preview: Intel Corp - Analyst Blog
19 7월 2011 - 10:45PM
Zacks
Intel Corp (INTC)
is scheduled to announce its second quarter earnings after the
closing bell on July 20.
We expect the company to report
generally in line with the Zacks Consensus Estimate, as positives
and negatives offset each other.
We also note that estimates for the
June quarter have remained unchanged at 51 cents over the last 60
days. They had advanced 6 cents following the first quarter
earnings announcement (see our detailed analysis here – Intel Posts
Solid Results, Outlook).
On the positive side, we see
continued strength at the enterprise for desktops, servers and
notebooks, which will likely offset the continued softness at
consumer. This will result in a favorable mix for the company,
especially since it will have more products at 32nm. Stronger ASPs
and growing utilization are other factors likely to drive the gross
margin.
Demand in Asia, particularly China,
remains strong, as Chinese income levels continue to increase.
Intel might introduce a discounting scheme to further feed the
trend.
The core business aside, Intel
should gain from the Wind River and McAfee acquisitions that have
helped it build software competencies and build a position in the
embedded segment (TVs and other non-PC applications). The growth in
this business in the second quarter could compensate for its losses
on the consumer PC side.
Intel is also on top with its pace
of innovation, since the company is just about ready to ship Sandy
Bridge for mainstream PCs and its 22nm development activity is way
ahead of anyone else in the field.
We expect Intel’s technology
headway to keep it ahead of peers in terms of both pricing and
performance. While there has been some noise about Advanced
Micro Devices (AMD) gaining some ground at Hewlett
Packard Company (HPQ) and Acer, we think these gains may
not be significant for Intel, since Intel products are superior in
performance and the premium to AMD is less significant that it has
been in the past.
We think Intel’s main concern
remains the consumer segment, where Apple Inc’s
(AAPL) iPad and other tablet devices from HP, Dell
Inc (DELL) and Samsung, among others, continue to
cannibalize on its sales. Ultrabook’s success is yet to be proved
and Intel’s attempts to develop a processor for smartphones have
not really taken off.
On the other hand, recent research
from IHS iSuppli states that processors based on technology from
ARM Holdings (ARMH) will power 23% of all
notebooks by 2015, indicating steady share losses for Intel.
Another thing to consider is the
fact that Intel gained significantly from Sandy Bridge stocking up
at distributors, something that may be expected to taper off as we
move though the year. We think that build levels coming down,
growing inventories in Asia, AMD’s gains at some customers and
Intel’s own discounting policies (impacting ASPs) could start to
take its toll on the company’s results in the second half.
The last 7 days have seen two
analysts lowering estimates for the September quarter and fiscal
2011, indicating that analysts are turning cautious about prospects
in the second half. However, since there are nearly 40 analysts
covering the stock, this has not yet had an impact on the Zacks
Consensus Estimate. Estimates for the rest of the year could swing
down post earnings.
All things considered, we think our
long term Neutral recommendation on Intel shares is justified. We
also have a Zacks #3 Rank on the shares, indicating a Hold
recommendation in the short term (1-3 months).
APPLE INC (AAPL): Free Stock Analysis Report
ADV MICRO DEV (AMD): Free Stock Analysis Report
ARM HOLDNGS ADR (ARMH): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
Zacks Investment Research
Dell (NASDAQ:DELL)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Dell (NASDAQ:DELL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024