NEW YORK (TheStreet) -- Intel Corp. (INTC - Get Report) stock is decreasing by 0.03% to $32.20 in afternoon trading ahead of the company's earnings release for the 2015 third quarter, which is scheduled for today after the market close.
Analysts have estimated that earnings will fall to 59 cents per share, compared with 66 cents per share for the third quarter of last year, and revenue will decline to $14.22 billion from $14.55 billion for the same period.
The 21.5-inch iMac with Retina 4K display will use a fifth-generation Intel Core processor and enhanced Intel Iris Pro Graphics, while the 27-inch iMac with Retina 5K display will feature sixth-generation Intel Core processors.
The sixth-generation Intel Core processor was introduced in September and is expected to help sales in the second half of the year.
Separately, TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate INTEL CORP (INTC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- INTC's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, INTEL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for INTEL CORP is currently very high, coming in at 78.60%. Regardless of INTC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.50% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.3%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- You can view the full analysis from the report here: INTC