Investor Agenda

Intel - After the Bell


Today’s focus on The Bell will be Intel .

The world’s largest chipmaker is set to report earnings right after the market closes.

We’ll have full analysis of Intel’s numbers, comments from the company and a close look at what is ahead for the semi-conductor sector.

Analysts are looking for a profit of 27 cents a share in Q3. That's down 23% from a year ago, however an improvement from the previous quarter.

Here’s what we’ll be watching:

  • Q3 quarter revenues
  • Gross margins
  • What the outlook is for Q4
  • How are inventories in the channel are doing
  • Overall sentiment, how the consumer responding, and signs of life on enterprise/corporate side

We spoke with Vijay Rakesh, Analyst with ThinkEquity. Rakesh makes both the bull and bear case for Intel.

The Bull Case:

-Gross margins have bottomed and will continue to improve in the future as utilization rates continue to increase as inventories are lean and end-market demand returns to a more-seasonal pattern.

-Although enterprise spending continues to be weak throughout 2009, resilience in the consumer Notebook space will continue to push up utilization rates, helping gross margins back to the low end of the corporate expectations of 55-60%.

-2010 should see better Corporate, Workstation Spend and a potential Server Refresh, which should be positive for Intel.

-Also 1H10 should see the new Intel Larrabee integrated graphics product launch.

The Bear Case:

-2H and Q4 visibility remains limited, especially sell-through post the inventory build. The company said it is seeing a strong seasonal 2H, though most skeptics argue 2H09 remains the wild card.

Don’t miss our after the bell – full Intel coverage at 4p ET today.


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