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Company Profile

Intel Corporation designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe, and Japan.

Intel Corporation (INTC) is scheduled to report its second quarter earnings results on July 17, 2012, after market close.

Technical Overview

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Intel has a market cap of $128.59 billion and it is currently trading around $25.56 with a 52 week range of $19.16 to $29.27. The stock has risen 5.4% year to date. The following table provides the key financial ratios for Intel:

Key RatioValue
Current Ratio2.13
PEG1.01
P/E10.83
Forward P/E9.57
Profit Margin23.16%
Return On Assets (ROA)18.23%
Return On Equity (ROE)26.61%

Recent News

  • On July 9, 2012, Intel announced it has entered into a series of agreements with ASML Holding N.V. intended to accelerate the development of 450-millimeter (MM) wafer technology and extreme ultra-violet (EUV) lithography totaling €3.3 billion (approximately $4.1 billion).
  • On July 4, 2012, Intel congratulated CERN, the European Organization for Nuclear Research, and the LHC community on the progress on the Higgs boson search.
  • On June 21, 2012, AtHoc, Inc (the pioneer and leader in network-centric emergency mass notification systems) announced the successful completion of an oversubscribed $5.6 million investment round led by Intel Capital, the global investment organization of Intel Corporation.
  • On June 18, 2012, InterDigital Inc (IDCC) 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 18, 2012, Cray Inc (CRAY) announced that the Company's next-generation supercomputer code-named "Cascade" will be available with Intel Corporation's new Intel(R) Xeon(R) Phi(TM) coprocessors.
  • On June 7, 2012, Autonomic Software, Inc. a leading enterprise power reduction, network management and security solutions provider, announced that they signed a Collaboration Agreement with Intel to integrate Sum VE(TM) technology into ANSA Platinum software, and that they will be participating in Market pilot tests of this enhanced solution.
  • On June 07, 2012, Phoenix Technologies Ltd., the global leader in UEFI firmware technology, products and tools, announced it has signed an agreement with Intel Corporation to be its collaborative partner for BIOS. The two companies will jointly develop the new reference UEFI firmware for the Intel code base.
  • On May 24, 2012, Intel Corporation announced it will invest more than $40 million over the next 5 years in a worldwide network of university research communities called the Intel Collaborative Research Institutes (ICRI).

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $13.60 billion when compared to $13.03 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 53 cents a share, down from 54 cents a share in the year-ago period.

The average price target from analyst for Intel is $29.71 with average rating is OVERWEIGHT

Out of the last 4 quarters, Intel has met or exceeded the EPS estimates all the 4 times. The following chart shows the analyst estimates history and the actual EPS results:

The following chart shows the annual summary of sales and net income for Intel:

Competition

Texas Instruments (TXN), Advanced Micro Devices (AMD), Broadcom Corp (BRCM) and NVIDIA Corporation (NVDA) are considered as major competitors for Intel and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure:

I have no positions in any stocks mentioned, but may initiate a long position in AMD, BRCM, CRAY, IDCC, MM, NVDA, TXN over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Source: Earnings Preview: Intel Corporation