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The Zacks Analyst Blog Highlights: Intel Corporation, Ford, General Motors, TRW Automotive and Lear

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April 20, 2011 | Comment(s): 0
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INTC | F | GM | TRW | LEA

For Immediate Release

Chicago, IL – April 20, 2011 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corporation (INTC - Analyst Report), Ford (F - Analyst Report), General Motors (GM - Analyst Report), TRW Automotive (TRW - Analyst Report) and Lear (LEA - Snapshot Report).

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Here are highlights from Tuesday’s Analyst Blog:

Intel Crushes Q1 Estimates

There's nothing new in Intel Corporation (INTC - Analyst Report) reporting a solid quarter. But the question this time around is whether its performance will be enough to remedy some bearish sentiment in the PC market, and maybe even lift the chipmaker's ho-hum Zacks #3 Rank ('Hold').

For its first quarter, INTC announced earnings per share of 59 cents, which topped the Zacks Consensus Estimate of 46 cents by almost 30%. The company has surpassed quarterly expectations stretching back more than 2 years now (and even then it managed to match).

The result was also about 37% better than last year's result.

Revenue increased by 25% year over year to $12.9 billion. That marks a very solid improvement over the Zacks Consensus Estimate at 11.6 billion. Intel stated that this revenue was an all-time record, thanks to double-digit annual revenue growth in every major product segment and across all geographies.

Looking toward the second quarter, INTC expects non-GAAP revenue at $12.85 billion, give or take $500 million.

Widespread Unemployment Declines

Geographically, the decline in unemployment has been widespread, but it still remains very high in most of the country. In March, the unemployment rate fell in 34 states and rose in seven. Relative to a year ago, the unemployment rate is down in 44 states and up in just five. The overall unemployment rate was 8.8% in March, down from 8.9% in February and 9.7% a year ago.

Nine states still have double-digit unemployment, and only five are close to what could reasonably be called full employment with unemployment rates below 6%. Unfortunately, lots of people live in the high-unemployment states like California (12.0%) and Florida (11.1%), and not that many live in the low-unemployment states like North Dakota (3.5%) and Nebraska (4.2%).

The drop in unemployment has been particularly steep in those states with a high exposure to the Auto industry. Ford (F - Analyst Report) and General Motors (GM - Analyst Report) are selling more cars than a year ago, although still far from the levels they were selling before the Great Recession hit. That has raised employment not only at those firms, but at the parts makers like TRW Automotive (TRW - Analyst Report) and Lear (LEA - Snapshot Report).

States closely tied to farming generally have low unemployment rates as the effects of high crop prices ripple through those economies. States that had the biggest real estate bubbles, are generally the ones with the highest unemployment rates.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros

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Read the full analyst report on INTC

Read the full analyst report on F

Read the full analyst report on GM

Read the full analyst report on TRW

Read the full analyst report on LEA

 

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