Goldman Has Some Thoughts On Intel (INTC)

Goldman Sachs has some notes on the semiconductor industry, including Intel Corporation

. Intel reports tomorrow after the bell. It has a Neutral rating on shares. Goldman writes, "We expect Intel's results will be consistent with the company's negative business update on 8/27/10 for revenues between $10.8 and $11.2 bn (flat to +4% qoq), below its original forecast of $11.2 to $12.0 bn (+4% to +11.5% qoq). While PC sales were weak in July and August, our industry discussions suggest that demand trends improved in September, and as a result we expect that Intel will be able to meet its revised outlook. We are estimating gross margins will be 66%, in-line with management's revised guidance (from 67% prior) and the Street. We estimate operating EPS will be $0.48, which excludes a $0.02 benefit from its $175 mn sale of an IPO stake that the consensus $0.50 estimate includes." Shares of INTC gained 12 cents on Friday to close at $19.52, a gain of 0.6%.