The recent reports of up to a 14% quarterly decline in global PC demand has some wondering if INTC may be able to meet or exceed its earnings and revenue projections. It needs to let the investment community know that it will somehow be able to sustain or grow its EPS to keep paying the dividend we're used to.
Last quarter the company announced a $13 billion capital expenditure plan and many analysts thought they heard that it would help INTC make meaningful inroads into the mobile device markets. That topic will be another very important one during the earnings call.
Will the current CEO Paul Otellini announce his successor during the earnings report and call? If he does, and if that choice speaks to Intel's determination to carry on with its commitment to become a dominant player as a microprocessor provider for smart phones and tablets, the stock may stabilize.
In what appears to be a long overdue correction in the stock market, one of the best ways for companies like Intel to put a floor under its stock price is to maintain its generous dividend policy and deliver some upbeat guidance for the rest of 2013. If it stumbles on either the results may be as ugly as gold's current debacle. Hope for the best and prepare for the possibility of a disappointment.At the time of publication the author had was long INTC and MSFT and has sold a LEAP put option on ETN. Follow @m8a2r1 This article was written by an independent contributor, separate from TheStreet's regular news coverage. Make smarter trading decisions and provide investment ideas that could help make you richer. Bryan Ashenberg does the dirty work so you don't have to!
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts