Here's part two of my what to expect posts on tech earnings this week:
At Intel , a decidedly more upbeat outlook for the world's largest chipmaker Intel: The company took the unusual step of hosting a mid-quarter financial update a few weeks ago, raising its outlook and narrowing its gross margins to a healthy 52%. But analysts say the number could hit as much as 54%, which follows exactly the message I got from Intel CFO Andy Bryant himself when he forecast a much stronger back half of 2007. The mid-quarter call should not have come as any surprise.
The Street is looking for Intel to report $9.62 billion and 30 cents a share thanks to the already well-documented better-than-expected sales in personal computers. Intel's secret weapon has been Latin America and China and the regions seem to be performing well. There have been some negative headlines about double-ordering and excess capacity, worries of a PC slowdown.
But the ducks seem to be lining up for this company's ongoing growth. The big pricing war with AMD is over and the PC industry continues to be robust. Diversification is still an issue for Intel and definitely a concern for 2009 and 2010, but for now, things seem pretty solid. Analysts will also be using Intel to telegraph what AMD might report on Thursday. If Intel is unusually bullish in an area like server chips, as an example, that could bode particularly badly for AMD. But that means Intel CFO Andy Bryant has his work cut out for him to keep this rally going.
Be sure and see my following post on IBM.
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