This Day On The Street
Continue to site
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 Set to Clear Its Lowered Bar

NEW YORK ( TheStreet) -- The fact that Intel (INTC) only warned once in the third quarter makes for slightly positive achievement for the wheezing chip sector. The next step comes after the bell Tuesday.

Intel is set to report earnings later today and give an update on the health of computer sales.

The PC chip maker added a last splash of cold water on the cooling tech rally in August when it cut its sales outlook due to slumping demand for computers. The shortfall ushered in a sense of doom for holiday PC sales season, dashing hopes from earlier in the year that a spending recovery was underway.

But without a stream of much-gloomier predictions, investors were left with the impression that PC sales were weak -- but not disastrously so.

Analysts expect Intel to post third quarter adjusted earnings of 50 cents a share on sales of $11 billion with a gross margin of 66%. But as always, investors await word of how the PC sector is managing and what Intel's outlook is for business in the fourth quarter.

Intel's near monopoly of the computer chip market has not served the company well as product trends have run in other directions. Intel has been absent from the mobile phone party and missed the launch of tablets, which Apple (AAPL) has shown to be a very important growth segment of the market.

In August, Intel agreed to a $1.4 billion deal to acquire the wireless chip business of Infineon just days after a $7.7 billion deal to buy security software giant McAfee (MFE). The acquisition rush was bold bid to get involved with ventures outside its core chip market.

Summing up in an Intel earnings preview, Barclays Capital writes in a note Tuesday that "given weak expectations and recent underperformance, we expect some near-term investor relief for Intel and for the broader semiconductor group."

Of course, if Intel offers a lowered forecast, expect alarms across the entire tech sector to go off.

--Written by Scott Moritz in New York.

>To contact this writer, click here: Scott Moritz, or email:

To follow Scott on Twitter, go to

>To send a tip, email:

Readers Also Like:

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs