Street expecting blowout quarter from Intel

Summary:Intel Corp. shares moved up 10 1/16 to an all-time high of 139 3/4 Monday, one day before the world's largest chipmaker announces its fourth-quarter results.

And so far all signs point to a breakout quarter. First Call consensus pegs the company to earn $1.07 a share, though most "whisper" numbers circulating through Wall Street put the earnings at closer to $1.15 a share.

Analysts are especially hopeful this time around because strong PC demand has eroded what was a flood of chips on the worldwide market. Furthermore, Intel itself has guided the investment community higher since the end of the third quarter, a sure sign that Intel is convinced it will beat the consensus estimate.

This week, Intel also unveiled its much-anticipated Pentium III microprocessor. Twenty-seven of the 33 institutional investment firms following the stock maintain either a "buy" or "strong buy" recommendation.

Last quarter, it made $1.5 billion (£0.91bn), or 89 cents a share, on sales of $6.7bn (£4.1bn). Its shares actually were trading at 65 3/8 in June. Analysts said profit margins, international sales and total revenue are the figures worth watching Tuesday.

In the year-ago quarter, Intel pocketed $1.7bn (£1.03bn), or 98 cents a share, on sales of $6.5 bn (£3.96bn).

Topics: Tech Industry


Larry Barrett is a freelance journalist and blogger who has covered the information technology and business sectors for more than 15 years. Most recently, he served as the online news editor for 1105 Media's Office Technology Group and as the online managing editor for SourceMedia's Investment Advisory Group publications Financial Pl... Full Bio

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