Technology

What to Expect From Intel Earnings

Chris Lange

Published: April 19, 2016 10:20 am

Last Updated: January 13, 2020 10:36 am

Intel Corp. (NASDAQ: INTC) is scheduled to report its first-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters call for $0.47 in earnings per share (EPS) on revenue of $13.83 billion. In the same period of last year, the company posted EPS of $0.41 and $12.78 billion in revenue.

This top chip stock traded sideways all last year and actually closed down from where it started 2015. But with $21 billion of cash on the books, the dividend looks very safe. Intel designs, manufactures and sells integrated digital technology platforms worldwide.

The company’s platforms are used in various computing applications, including notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

Intel does a stunning 82.4% of its sales overseas, the lion’s share of it in Asia, where the chips that it produces are used in personal computers, tablets and other personal electronic devices.

A few analysts weighed in on Intel prior to the release of its earnings report:

• Cowen reiterated a $33 price target.
• Summit Research has a Buy rating with a $37 price target.
• Nomura reiterated a Buy rating with a $35 price target.
• Wedbush reiterated an Outperform rating with a $39 price target.
• B. Riley reiterated a Buy rating with a $40 price target.

So far in 2016, Intel has underperformed the broad markets, with the stock down 7%. However, over the past 52 weeks the stock is just barely positive, less than 1%.

Shares of Intel were down less than 1% at $31.62 early Tuesday, with a consensus analyst price target of $35.89 and a 52-week trading range of $24.87 to $35.59.