Earnings Preview: Intel

| About: Intel Corporation (INTC)
This article is now exclusive for PRO subscribers.

Intel (NASDAQ:INTC) is expected to report Q1 earnings after the market close on Tuesday, April 17, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is 50c for EPS and $12.84B for revenue, according to First Call. Intel’s Q1 results will be watched for signs of the health of the PC industry. The company is expected to post declines in profit and revenue. Management guidance is for Q1 revenue of $12.8B, plus or minus $500M. The company sees the Q1 adjusted gross margin at 64%. The whisper number is 42c, 8c behind consensus. Last quarter the company reported earnings 3c ahead of the whisper number. Positive reports last week from peers of increased PC sales in the first three months of the year have some optimistic that Intel's earnings will contain good news.

Analyst Views

Jefferies expectations of Intel for Q1 are close to consensus and call for an inline print. The firm thinks that the initial ramp of Ivy Bridge and Romley will translate to positive visibility, especially after a subseasonal Q4. On capex, Intel guided for $12.5B, plus or minus $400M, for 2012, and $6.5B in depreciation expense. At 11.5x 2012 EPS, Jefferies sees the stock as cheap on a P/E basis. Advanced Micro Devices (NASDAQ:AMD) read-through: Jefferies thinks that positive demand trends from Intel, and/or high capacity utilization would likely translate to positive trends for AMD as well. AMD reports its Q1 results on Thursday, April 19.