Intel (NASDAQ:INTC) is scheduled to release Q2 earnings this Tuesday July 13th, after the market close. Average analyst estimates for the chip giant are $.43/share in EPS and $10.25 billion in Revenue. Forty-four analysts track the stock with two upward EPS revisions in the last 30 days and one downward EPS revision in the last 30 days. Last quarter, Intel beat average analyst expectations by.05/share, .43/share vs. .38/share.
Now let’s look at the sentiment for Intel to see if we can learn anything ahead of their earnings release. We will use sentiment captured by Piqqem to determine Intel’s outlook for this quarter’s earnings. Piqqem uses a -100 to 100 scale and leverages the wisdom of crowds and its own proprietary algorithms to capture and calculate sentiment. Last quarter sentiment for Intel predicted a good quarter and the company delivered.
Any sentiment rating above 25 is considered positive, below 0 is considered negative, while 0-25 is considered neutral. Changes in sentiment are also crucial in understanding and interpreting a company’s sentiment ahead of an event like earnings. Finally, market forces need to be considered to make sure overall market sentiment changes are not overly influencing a stock’s individual sentiment.
Intel is also part of the Piqqem Technology Sentiment Index which tracks sentiment for 28 technology stocks in the Hardware & Networking, Software & Gaming, Internet & Mobile, and Semiconductor Sectors. Sentiment for the semiconductor sector has shown growing strength recently which is also positive for Intel.
The above chart shows Intel’s sentiment decreasing by 2 pts from the beginning of the quarter thru today. As a comparison, sentiment for the Piqqem Technology Index rose 2 pts in the same period, which means Intel’s drop in sentiment was not strongly influenced by market forces. On the Piqqem scale, Intel’s sentiment rating of 40.70 is considered very positive and its absolute sentiment indicates a high quality stock. Only Intel knows their actual results, but current sentiment points to the Chip giant delivering strong results on Tuesday.
I will be posting earnings reports on AMD and Google so check back to see these results and if you have an opinion you can vote at Piqqem.
Disclosure: No Positions