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

Why Intel Earnings Matter (Update 1)

Updated from 8:10 a.m. to include additional analysis in the twelfth paragraph.

NEW YORK (TheStreet) -- Intel (INTC - Get Report) is set to report fourth-quarter earnings after Thursday's closing bell, and all eyes will be on CEO Brian Krzanich's PC business, which is still the chip giant's bread and butter.

Research firm Gartner noted 82.6 million PC units were shipped in the fourth quarter, a bit better than expected, and may show that the PC market, while still exceptionally weak, is starting to bottom out. This could last a couple of quarters, as Windows XP becomes obsolete forcing companies to upgrade their computers.

Intel shares were lower on Thursday, falling 0.8% to trade at $26.44.

RBC Capital Markets analyst Doug Freedman noted that while there might be some improvement in the PC business this quarter, it might be "a short term phenomena," as enterprise IT spend picked u, largely due to XP becoming obsolete. "We believe that revenues could be at mid-pt and potentially better given the modest pick-up in Q4 PC demand and on-going data center strength," Freedman wrote in a note. He rates shares "sector perform" with a $26 price target.

Analysts surveyed by Thomson Reuters expect Intel to earn 52 cents a share on $13.71 billion in revenue for the fourth quarter.

Wedbush Securities Betsy Van Hees analyst said she believes sentiment is positive surrounding the stock, but expectations are fairly low. "While we remain very impressed with management's new initiatives, we believe for INTC to outperform the market from here that we will need to seemeaningful revenue contributions from these new initiatives and DCG to outpace declines in PCCG returning INTC back to strong Y/Y earnings and revenue growth," Van Hees wrote in a note.

Van Hees rates Intel shares "neutral" with a $27 price target.

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
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
INTC $30.25 -1.20%
AAPL $95.21 1.70%
FB $117.57 -0.84%
GOOG $694.09 -0.59%
TSLA $235.82 -2.50%


Chart of I:DJI
DOW 17,769.77 -121.39 -0.68%
S&P 500 2,066.57 -14.86 -0.71%
NASDAQ 4,784.8210 -32.7730 -0.68%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs