Intel (NASDAQ:INTC) is due to report its earning after the close. A nature show could do an entire episode on the song-and-ritual that goes on between powerful companies like Intel and Wall Street analysts.
The current consensus is for Intel to earn 38 cents a share. This is a huge disfavor for individual investors because no one in the world expects Intel to earn 38 cents a share. If they did, the Street would freak.
Oh…watch the mighty red-bellied rough-winged swallow do its mighty beat-and-raise dance!
My guess, and it’s just a guess, is that Intel will earn between 45 and 50 cents a share. Last earnings season, Intel reported earnings of 40 cents a share, ten cents more than estimates. Even that didn’t impress the Street. The stock initially bounced but eventually gave it back and more.
With the last earnings report, Intel gave Q1 revenue guidance of $9.7 billion, plus or minus $400 million. That sounds fair. The real news will be what kind of guidance the company gives for the rest of the year.
I think they’re playing for the beat-and-guide-higher crowd. Count me a member.