This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Don't Overreact to Intel's Earnings Results

Stocks in this article: QCOM INTC GOOG NVDA INTL ARMS

NEW YORK ( TheStreet) -- Getting the Street to see the bright side of Intel (INTC), which will report its third-quarter earnings results on Tuesday, has been a difficult task.

As one of the lone supporters, hoping this company will see better days ahead, I can say its slow progression out of the dying PC environment has been frustrating watch. However, I don't believe it serves investors' interest to focus solely on the company's near-terms results.

I'm not dismissing the fact that Intel has dropped the ball on the mobile devices market, but there's also a point when the company's recent struggles against the likes of Qualcomm (QCOM) and ARM Holdings (ARMH) have been beaten to death. At the risk of sounding like an Intel apologist, I believe the company's mobile advancements -- as modest as they may appear -- are steps in the right direction.

To that end, it's time that investors cease their obsession with the company's quarter-to-quarter performance and adjust their expectations as Intel begins to think differently.

On Tuesday, the Street will be looking for Intel to post a profit of 54 cents per share on revenue of $13.47 billion. While earnings are expected to decline year over year by 7 cents per share, revenue is expected to come in essentially flat.

The good news, though -- and perhaps a sign of optimism -- is the Street's profit estimates have climbed up by 3 cents over the past three months. As I've said, I wouldn't put too much weight on what Intel reports on Tuesday, at least not to the extent it blinds the operational progress the company is making in other areas.

For instance, amid a highly competitive environment, Intel still possesses some distinct operational advantages over rivals such as NVIDIA (NVDA) and Advanced Micro Devices (AMD). The company's world-class technological and manufacturing capabilities serve as one example.

Also, while it's easy to discount Intel on the basis of the company's consecutive quarters of revenue declines -- including a 5% drop in the July quarter -- investors miss the fact that the company is still meeting expectations on margins, which have grown for the past several quarters. Intel's management expects more margin expansion this current quarter.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs