What to Expect from Intel

Seth Jayson, The Motley Fool
Updated

Intel (NAS: INTC) is expected to report Q2 earnings on July 17. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Intel's revenues will shrink -4.5% and EPS will shrink -27.8%.

The average estimate for revenue is $12.89 billion. On the bottom line, the average EPS estimate is $0.39.


Revenue details
 Last quarter, Intel reported revenue of $12.58 billion. GAAP reported sales were 2.5% lower than the prior-year quarter's $12.91 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, EPS came in at $0.40. GAAP EPS of $0.40 for Q1 were 25% lower than the prior-year quarter's $0.53 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 56.2%, 780 basis points worse than the prior-year quarter. Operating margin was 20.0%, 950 basis points worse than the prior-year quarter. Net margin was 16.3%, 490 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $53.45 billion. The average EPS estimate is $1.87.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 9,435 members out of 10,057 rating the stock outperform, and 622 members rating it underperform. Among 2,065 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,979 give Intel a green thumbs-up, and 86 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intel is hold, with an average price target of $22.86.

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The article What to Expect from Intel originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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