Intel Earnings Imminent

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S&P 500 (NYSE:SPY) component Intel (NASDAQ:INTC) will unveil its latest earnings on Tuesday, October 16, 2012. Intel develops advanced integrated digital technology products for industries such as computing and communications.

Intel Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 50 cents per share, a decline of 23.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 65 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 53 cents during the last month. Analysts are projecting profit to rise by 12.3% versus last year to $2.14.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 54 cents per share against a mean estimate of profit of 52 cents per share.

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Stock Price Performance: Between August 14, 2012 and October 10, 2012, the stock price had fallen $4.72 (-17.8%), from $26.48 to $21.76. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 6.4% (+$1.66) over that span. It saw one of its worst periods between August 16, 2012 and August 27, 2012 when shares fell for eight straight days, dropping 6.6% (-$1.75) over that span.

Wall St. Revenue Expectations: On average, analysts predict $13.2 billion in revenue this quarter, a decline of 7.2% from the year-ago quarter. Analysts are forecasting total revenue of $53.46 billion for the year, a decline of 1% from last year’s revenue of $54 billion.

A Look Back: In the second quarter, profit fell 4.3% to $2.83 billion (54 cents a share) from $2.95 billion (54 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.6% to $13.5 billion from $13.03 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 28.2% in the third quarter of the last fiscal year, 21.2% in the fourth quarter of the last fiscal year and 0.5% in the first quarter before increasing again in the second quarter.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 13.4% in the first quarter and then again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.45 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with 23 of 40 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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