Intel (INTC) Stock Inspires Confidence Ahead of Earnings


Semiconductor titan Intel (NASDAQ:INTC) is gearing up for the release of its second-quarter results, scheduled for the evening of April 26. Chipzilla already announced in June that revenue for the quarter totaled $16.9 billion and EPS came in at $0.99 versus previous revenue and EPS guidance of $16.3 billion and $0.85, respectively. However, management will likely provide an updated outlook for the full year during the 2Q18 earnings call.

Ahead of the print, MKM analyst Ruben Roy is coming out with even more confident expectations, following end of quarter conversations with supply chain participants.

Roy wrote, “INTC continues to highlight the data-centric portion of its business as the company diversifies away from the PC market. In Q1, data-centric businesses increased 25% year-over-year and exited the quarter representing 49% of overall company revenue, up from roughly 30% in 2012. INTC noted continued data-centric revenue momentum with its positive revenue guidance revision. We continue to view INTC shares positively given the continued diversification of revenue away from PC related markets to data related markets, improving cash flow metrics and a discounted valuation relative to peers (INTC shares currently trade at 12.7x our new 2019 EPS estimate versus the peer group average multiple of 17.1x).”

Net net, Roy reiterates a Buy rating on Intel shares, with a price target of $61.00, which represents a potential upside of 17% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ruben Roy has a yearly average return of 11.2% and a 62.7% success rate. Roy has a 14.1% average return when recommending INTC, and is ranked #629 out of 4840 analysts.

The initial word out on the Street echoes Roy’s bullish conviction on the chip giant, as TipRanks analytics showcase INTC as a Buy. Based on 32 analysts polled in the last 3 months, 17 are bullish on the stock, 11 remain sidelined, while 4 are bearish. The 12-month average price target stands at $58.87, marking a 12.5% upside from where the stock is currently trading.

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