Seeking Alpha
Profile| Send Message|
( followers)  

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe, and Japan. The company offers microprocessors that process system data and controls other devices in the system; and chipsets, which sends data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive or solid-state drive, and CD, DVD, or Blu-ray drives; system-on-chip products that integrate its processing functions with other system components, including graphics, audio, and video onto a single chip; wired network connectivity products; and wireless connectivity products.

It is scheduled to report its Q2 2012 results on July 17, 2012, after the bell. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $131.66B and is currently trading at $26.17 with a 52 week range of $19.16 - $29.27. The stock performance year to date: 9.59%. It is currently trading above 200 SMA, but below 20and 50SMA.

Key Metrics

  • Trailing P/E: 11.07
  • Forward P/E: 9.80
  • Price/Sales: 2.43
  • Price/Book: 2.80
  • PEG Ratio: 1.03
  • Total Debt: 7.52B
  • Annual dividend yield: 3.20%
  • Return on Equity: 26.61%
  • Return on Assets: 15.59%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.53 EPS, beating analyst estimates of $0.50.

The consensus EPS estimate is $0.53 based on 44 analysts' estimates, down from $0.54 a year ago. Revenue estimates are $13.60B, up from $13.03B a year ago. The median target price by analysts for the stock is $30.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 27, 2012, Northland Securities initiated Market Perform rating for the company.
  • On June 5, 2012, Maxim Group reiterated Buy rating for the company.
  • On May 11, 2012, Barclays reiterated Equal Weight rating for the company.
  • On April 18, 2012, Longbow reiterated Buy rating for the company.
  • On April 12, 2012, Barclays reiterated Equal Weight rating for the company.
  • On March 11, 2012, Avian initiated Neutral rating for the company.
  • On February 5, 2012, Maxim Group initiated Buy rating for the company.
  • On January 19, 2012, the company was downgraded from Buy to Hold at Kaufman Bros.

Latest Developments

  • On July 10, 2012, Reuters reported that Intel Corporation will spend more than $4 billion to buy up to 15% of ASML Holding NV. Intel hopes to speed the adoption of the next generation of chip manufacturing processes from ASML by as much as two years.
  • On June 18, 2012, InterDigital Inc and Intel Corporation announced that certain of InterDigital`s subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.
  • On June 7, 2012, Phoenix Technologies Ltd., a company in UEFI firmware technology, products and tools, announced it has signed an agreement with Intel Corporation to be its collaborative partner for BIOS.
  • On June 4, 2012, Avanquest Software SA has announced having signed a collaboration agreement with Intel Corporation for the marketing of Avanquest Software's flagship titles on the Intel AppUpSM center in France.
  • On May 7, 2012, Intel Corporation announced that its board of directors has approved a 7% increase in the quarterly cash dividend to $0.225 per share ($0.90 per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2012.
  • On May 2, 2012, Cray Inc. announced that it has completed the previously announced transaction to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On April 27, 2012, Aware, Inc. announced that it has signed an agreement for the sale of selected patents and patent applications to Intel Corporation for approximately USD75,000,000.00, subject to customary closing conditions and any required regulatory approvals.
  • On April 25, 2012, Reuters reported that Intel Corporation will ask Europe's second-highest court in July to scrap a EUR1.06 billion ($1.4 billion) EU antitrust fine, arguing regulators failed to prove it blocked a rival in their 2009 decision.
  • On April 24, 2012, Cray Inc. announced that it signed a definitive agreement to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.
  • On April 18, 2012, SeeNews - The Corporate Wire reported that the shares of Apple Inc, Visa Inc, Intel Corp, The Coca-Cola Company and Bank of America Corp can be traded on the Bucharest bourse as of April 18, 2012.
  • On April 17, 2012, Intel Corporation announced that for second quarter of 2012, it expects revenue to be $13.6 billion, plus or minus $500 million. The guidance does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after April 17.
  • On April 13, 2012, Maxthon, a global software and web services company, announced collaboration with Intel at the Intel Developer Forum (IDF), held April 11-12 in Beijing.
  • On April 11, 2012, Renren Inc announced partnership with Intel Corporation and Feitian, innovator of security technologies and applications, to introduce Intel Identity Protection Technology (IPT) to Renren.com SNS platform.
  • On April 11, 2012, Bucharest Stock Exchange announced that Apple Inc, Bank of America Corp, Intel Corp, The Coca-Cola Company and Visa Inc will start trading on the alternative trading system of the Bucharest Stock Exchange on April 18, 2012.
  • On March 13, 2012, Reuters reported that Intel Corporation is developing an Internet-based TV service for consumers and has been promoting it with media companies.
  • On March 6, 2012, Nationz Technologies Inc announced that it has signed a memorandum of understanding with Intel Corporation, for their cooperation on the industrialization of trusted computing technology and construction of trusted computing industry chain, as well as the development and verification of new standards for trusted computing technology.
  • On February 27, 2012, Visa Inc and Intel Corporation announced a strategic agreement to develop mobile commerce solutions tailored to consumers in developed and developing countries.
  • On February 9, 2012, Intel Corporation and New York Attorney General announced that they have agreed to terminate the lawsuit alleging violation of U.S. and state antitrust laws that was filed by the New York Attorney General in November 2009.
  • On January 25, 2012, Intel Corporation announced that the Board of Directors has declared a $0.21 per share ($0.84 per share on an annual basis) quarterly dividend on the Company's common stock.
  • On January 19, 2012, Intel Corporation announced that for the first quarter of 2012, it expects revenues to be $12.8 billion, plus or minus $500 million. For fiscal 2011, it expects revenue growth in high single digits.
  • On January 11, 2012, Intel Corporation and Motorola Mobility Holdings Inc. announced that the two companies were entering into a multi-year, multi-device strategic relationship that includes smartphones which Motorola will begin shipping later this year using Intel Atom processors and the Android platform.
  • On January 11, 2012, Technicolor SA announced that it has agreed announces strategic relationships around M-GO with Corporation, Samsung Electronics Co., Ltd. and VIZIO. M-GO is a free app that combine all media, including movies, music, apps, live TV, in one location.

Competitors

Intel Corporation operates in Semiconductor - Broad Line industry. The company could be compared to Advanced Micro Devices, Inc. (NYSE:AMD), Micron Technology Inc. (NASDAQ:MU), OCZ Technology Group, Inc. (NASDAQ:OCZ), Silicon Motion Technology Corp. (NASDAQ:SIMO), and Texas Instruments Inc. (NASDAQ:TXN). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)INTC Chart

INTC data by YCharts

Competitors' Latest Development

  • On July 9, 2012, Advanced Micro Devices, Inc. announced that for the second quarter of 2012, it expects revenue to decrease approximately 11% sequentially. The Company previously forecasted second quarter 2012 revenue to increase 3% , plus or minus 3% sequentially.
  • On June 29, 2012, Advanced Micro Devices, Inc. announced that for first quarter of 2010 it expects revenue to be down seasonally.
  • On June 27, 2012, OCZ Technology Group Inc announced that Dynamite Data, has selected OCZ's Deneva 2 SATA III SSDs as part of updated storage infrastructure.
  • On June 26, 2012, Advanced Micro Devices, Inc announced that Major League Baseball's San Francisco Giants selected AMD as a technology partner. The Giants have recently installed 66 new AMD A-Series Accelerated Processing Unit (APU)-based HP TouchSmart 320m All-In-One (AIO) touchscreen systems at AT&T Park, which will be followed by deployments of other AMD-powered systems throughout the organization.
  • On May 30, 2012, Origin Energy Limited announced that Transform Solar, a 50:50 solar photovoltaic joint venture between Micron Technology Inc. (Micron) and Origin Energy Limited (Origin), decided to discontinue production of its SLIVER photovoltaic modules in Idaho, United States.
  • On May 10, 2012, Micron Technology, Inc. confirmed it is engaged in discussions with Elpida Memory, Inc.'s trustees to acquire Elpida's business.
  • On May 8, 2012, OCZ Technology Group Inc and IceWEB Storage Corporation announced that OCZ's SAS-based Talos 2 SSDs and SATA III-based Deneva 2 SSDs have been selected by IceWEB for inclusion in IceWEB's complete line of unified data storage systems.
  • On May 7, 2012, Reuters reported that Micron Technology, Inc. has won the right to negotiate exclusively to buy Japanese chip maker Elpida Memory, Inc. after offering more than JPY200 billion ($2.5 billion) for the company.
  • On May 1, 2012, OCZ Technology Group Inc announced that for the first quarter of 2013, it expects net revenue to be in the range of $110 million to $120 million. For fiscal 2013, the Company expects net revenue to be in the range of $630 million to $700 million.
  • On April 27, 2012, Silicon Motion Technology Corporation announced that for the second quarter of 2012, it expects revenue to be up 0% to 10% sequentially. For fiscal 2012, it expects revenue to be 20% to 30% compared with fiscal 2011.
  • On April 23, 2012, OCZ Technology Group, Inc. announced that its SAS-based Talos Two SSDs have been selected by HyVE (Hybrid Virtualization Engine) Systems for implementation within three high-compute platforms targeted for virtual desktop infrastructure (VDI) academic and corporate end user compute solutions.
  • On April 19, 2012, Advanced Micro Devices, Inc. announced that for second quarter of 2012, it expects revenue to increase 3%, plus or minus 3%, sequentially. The Company reported revenues of $1.59 billion in the first quarter of 2012.
  • On April 11, 2012, Micron Technology, Inc. announced that it intends to offer, subject to market and other considerations, $435.0 million aggregate principal amount of convertible senior notes due 2032 and $435.0 million aggregate principal amount of convertible senior notes due 2032 through an offering in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
  • On March 30, 2012, Micron Technology, Inc. announced that it reached an agreement with Oracle America Inc. (Oracle) to settle a lawsuit filed by Oracle against Micron in the U.S. District Court for the Northern District of California.
  • On March 29, 2012, OCZ Technology Group Inc announced that it has signed a distribution agreement with Promark Technology, which increases the availability of OCZ's enterprise SSDs to Promark's portfolio of VARs (value added resellers) and system integrators in the United States.
  • On March 26, 2012, Advanced Micro Devices, Inc. announced Rockwell Collins has selected the AMD Radeon E2400 embedded graphics processor for inclusion in its integrated flight deck solution, Pro Line Fusion.
  • On March 23, 2012, Advanced Micro Devices, Inc. announced that it completed the acquisition of SeaMicro Inc., a pioneer in energy-efficient, high-bandwidth microservers, for approximately $334 million, net of cash assumed.
  • On March 6, 2012, Photronics, Inc. announced that it paid approximately $35 million to Micron Technology, Inc. (Micron) in connection with the purchase of its U.S. nanoFab building in Boise, ID that it previously leased from the building's owner Micron.
  • On March 5, 2012, Reuters reported that Advanced Micro Devices, Inc. has dumped its equity stake in GlobalFoundries Inc, three years after spinning off the company that makes most of its computer chips, in a move that frees it to strike manufacturing deals with other foundries.
  • On February 13, 2012, OCZ Technology Group Inc announced closing of its previously announced common stock offering of 12,000,000 primary shares at a price of $9.00 per share.
  • On February 8, 2012, OCZ Technology Group Inc announced the upsizing and pricing of a common stock offering of 12,000,000 primary shares at a price of $9.00 per share, reflecting an upsize from the previously announced offering of 10,000,000 primary shares.
  • On February 4, 2012, Micron Technology, Inc. announced the appointment of D. Mark Durcan as Chief Executive Officer of the Company. Mr. Durcan will also serve as a Director on Micron's Board of Directors.
  • On February 4, 2012, Wall Street Journal reported that Steven R. Appleton, Chairman and Chief Executive of Micron Technology, Inc. died February 3, 2012 when the airplane he was piloting crashed at Boise, Idaho's airport.
  • On February 3, 2012, Micron Technology, Inc. announced earlier today that the Company is deeply saddened by the death of Chairman and Chief Executive Officer Steve Appleton in a small plane accident in Boise.
  • On February 3, 2012, Silicon Motion Technology Corporation announced that for the first quarter of 2012, it expects revenue to be down 5% to 15% sequentially. The Company reported net sales of $67.1 million for the fourth quarter of 2011.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Intel