This Day On The Street
Continue to site
ADVERTISEMENT
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

Intel's 3Q: Watching For Clues To The Holidays

JORDAN ROBERTSON

SAN FRANCISCO (AP) â¿¿ Intel Corp. is scheduled to report its third-quarter financial results on Tuesday, Oct. 12, after the market closes.

WHAT TO WATCH FOR: The personal computer industry, of which Intel is a major part, has already copped to a crummy back-to-school shopping season.

Intel, the world's biggest maker of the "brains" of PCs, cut its third-quarter guidance in August. Advanced Micro Devices Inc., the No. 2 to Intel in that market, recently did the same. And two leading PC makers â¿¿ Hewlett-Packard Co. and Dell Inc. â¿¿ also raised red flags.

Consumers clamped down on spending on new PCs this summer amid worries about prolonged joblessness and other economic anxieties.

Now, investors' focus will be on the next critical shopping season: the holidays. If Intel's guidance is strong, it could be a balm for many of those fears, showing Wall Street that Intel's customers â¿¿ PC makers â¿¿ are anticipating a bump in demand. Signs of shakiness would likely depress expectations for a strong finish this year in PCs.

WHY IT MATTERS: Because of Intel's unique position, it's seen as a proxy for the overall PC market. Its own profitability often isn't as important for the market as what its guidance says about the health of PC sales.

Intel can prosper even when PC sales are skidding â¿¿ it invests billions of dollars in cutting-edge factories because new technologies let Intel shrink the size of the transistors on its chips. That cuts the cost of making the chips, which helps Intel's profit margins while boosting the chips' performance and giving consumers faster PCs.

Transistors are the tiny on/off switches that control the flow of electrical current.

Intel's microprocessors are inside 80 percent of the world's PCs.

WHAT'S EXPECTED: Intel is expected to have earned 50 cents per share on $11.0 billion in revenue, according to a poll by Thomson Reuters. In August, Intel warned that its revenue would be between $10.8 billion and $11.2 billion, down from its earlier forecast of $11.2 billion to $12 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,623.41 +27.06 0.15%
S&P 500 2,064.42 +6.78 0.33%
NASDAQ 4,980.3990 +21.9310 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs