Intel Corporation (NASDAQ:INTC) Information Technology - Semiconductors | Reports April 19, After Market Closes
Key Takeaways
- The Estimize community is calling for EPS of $0.51 on $14.04 billion in revenue, 2 cents higher than Wall Street in earnings and $18 million in revenue
- The company’s success has been supported by robust growth in its mobile and wearables space, the Internet of Things, and substantial returns on its cloud computing investments
- Intel has beat in 3 of the 4 quarters of fiscal 2015 and is prepared to kick off 2016 on a good note
After a strong 2015, Intel (INTC) is prepared to kick off 2016 with first quarter earnings Tuesday, after the market closes. Intel capped off a record 2015 of earnings, with fourth quarter results that beat on the bottom line by 10 cents and $100 million on the top. Despite better than expected earnings, the stock has remained relatively flat. Over the past 12 months, shares of Intel rose a meager 0.47%. Regardless, the Estimize community is expecting Intel to top expectations for a fourth straight quarter. Analysts are calling for EPS of $0.51 on $14.04 billion in revenue, 2 cents higher than Wall Street on earnings and $18 million above on revenue. Compared to a year earlier, earnings are predicted to fall 20% on a 10% decline in sales. Given Intel’s track record, it’s not surprising they beat Estimize in 50% of reported quarters and Wall Street 81% of the time.
The weakness in semiconductors and the PC market over the past few years has been well understood. However, this has failed to impact Intel who has beaten expectations in 3 of the last 4 quarters. The company’s success has been supported by robust growth in its mobile and wearables space, the Internet of Things, and substantial returns on its cloud computing investments. Unfortunately, the PC market is no longer a viable long term strategy which puts Intel’s Client Computing Group at risk. Currently, the Client Computer Group oversees modem chips and mobile devices, representing 60% of the company’s revenue. Moreover, INTC faces outside threats including slowing growth in emerging markets and greater competition from Advanced Micro Devices (NASDAQ:AMD). Even though Intel appears well positioned to report another beat, future guidance will likely dictate whether the stock moves up or down. 
Do you think INTC can beat estimates?