eChristian Inve...'s  Instablog

eChristian Investing
Send Message
eDividendStocks.com is the ultimate investor guide to dividend stocks, dividend news announcements, high yield dividend stocks and dividend stock picks.
My blog:
eDividendStocks
  • Intel Earnings Preview - Fourth Quarter 2009 0 comments
    Jan 6, 2010 10:38 AM | about stocks: INTC
    Intel is scheduled to report their fourth quarter 2009 results after the market closes on Thursday, January 14, 2010. Based on our analysis, we at EarningsPreviews.com are expecting INTC to report better than expected quarterly results that will exceed Wall Street’s consensus expectations.
     
    Analyst Expectations
    We are forecasting revenues of $10.24 billion and EPS of $.31. This would represent a 24% increase in revenues from last year’s $8.23 billion in the same period. The current analyst consensus estimates calls for revenues of $10.16 billion and EPS of $.30. On October 13, the company provided fourth quarter revenue guidance of $9.7 - $10.5 billion.
     
    After four consecutive quarters of y/y revenue declines, Intel is expected to return to positive sales growth this quarter. Unfortunately, Intel’s profitability will be impacted this quarter by their $1.25 billion legal payment to Advanced Micro Devices AMD to settle their outstanding antitrust and patent dispute. However, the key story that investors should take notice of will be their impressive top-line growth. 
     
    As the global economy continues to improve, Intel is benefitting from increasing demand for microprocessors and chipsets. Gartner is forecasting a 3.3% growth in enterprise IT spending in 2010 after a decline of nearly 7% in 2009. Intel’s shares have rallied on the improving economic outlook and are trading near their 52-week high.
     
    Stock Performance
    In 2009, Intel’s shares posted an impressive 39% gain and outperformed the 19% gain in the Dow Jones industrial average. Since the end of February 2009, INTC’s stock price has surged 164%.
     
    Valuation
    Shares are now trading at 14x consensus 2010 EPS estimates. This is a slight discount to the relative valuations of their peer group. Despite the strong performance of Intel’s stock in 2009, there valuation still looks attractive and we would expect their stock price to climb higher in 2010.
     
    Recommendation: Buy with a $24 price target
     


    Disclosure: "No Positions"
    Stocks: INTC
Back To eChristian Investing's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.