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Are Intel's Biggest Analysts Bullish?

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Intel Corporation (NASDAQ: INTC) is scheduled to report its second quarter results after market close on Wednesday.

Estimize, the crowd-sourced earnings and economic rating site, is estimating Intel will earn $0.52 in the second quarter on revenue of $13.243 billion. This compares to the Wall Street consensus calling for an earnings per share of $0.50 on revenue of $13.044. Intel previously guided its revenue to be $13.2 billion +/- $500 million.

Here is what some of Wall Street's top analysts are saying ahead of the print.

Summit Research: Intel Will Blame PC Weakness

Srini Sundararajan of Summit Research commented in a note that Intel will likely blame softness in the PC market as the company is expected to report revenues of $12.8 billion in the quarter. In addition, expected revenue from Europe and China may not have "come through."

Sundararajan noted that Intel provided initial Q2 commentary in April and had sufficient sell-through data for the quarter. As such, the chance of a "massive" miss is "unlikely." The analyst is expecting Intel to earn $0.49 in the quarter, but "more importantly" is now forecasting full year 2015 revenue and earnings per share to read $55.3 billion and $2.10, respectively given further "dark PC growth clouds."

Shares remain Hold rated with a price target lowered to $29 from a previous $30.

Piper Jaffray: ‘Remaining Positive'

Ruben Roy of Piper Jaffray commented in a note that news of a weak PC market "should be no surprise" to Intel's shareholders and as such should have "little impact" on the stock after the company reports its results.

Roy also noted that a recent supply chain meeting in Taiwan left him "incrementally cautious" on Intel's near-term prospects. As such, the analyst continues to take a "cautious view" of the company's second quarter print as well as its third quarter outlook.

Bottom line, news from Advanced Micro Devices, Inc. (NASDAQ: AMD) that it is seeing a slowdown in the PC market should have "little or no" impact on Intel's shares "as the cat has been out of the bag for weeks."

Shares remain Overweight rated with an unchanged $38 price target.

JPMorgan: Q2 PC Demand ‘Worse Than Expected

Harlan Sur of JPMorgan commented in a note that second quarter PC shipments declined by 6 percent, worse than the 2 percent previously expected. The analyst also noted that he is expecting an 8 percent decline in PC shipments for the full year, which is also worse than the 6 percent previously expected.

Sur is projecting Intel to earn $0.48 in the second quarter on revenue of $12.9 billion, down from prior estimates of $0.54 per share and $13.2 billion in revenue.

Finally, the analyst noted that he will update his forward model after the company's post-earnings conference call.

Shares remain ‘Not Rated' with no assigned price target.

Latest Ratings for INTC

Mar 2018Bank of AmericaMaintainsBuyBuy
Jan 2018CitigroupReinstatesNeutralBuy
Jan 2018Stifel NicolausMaintainsBuyBuy

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