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!

Intel Set to Clear Its Lowered Bar

Stocks in this article: INTC

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:

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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