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Tale of the Tape

Zacks Equity Research

Will Intel (INTC) Crush Estimates at Its Next Earnings Report?
September 26, 2016

INTC

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Intel Corporation (INTC - Free Report) , a firm in the Semiconductor General industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, INTC has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, INTC expected to post earnings of 49 cents per share, while it actually produced earnings of 54 cents per share, a beat of 10.2%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 53 cents per share, when it actually reported earnings of 59 cents per share instead, representing a 11.3% positive surprise.

INTEL CORP Price and EPS Surprise

 

INTEL CORP Price and EPS Surprise | INTEL CORP Quote

Thanks in part to this history, recent estimates have been moving higher for Intel. In fact, the Earnings ESP for INTC is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for INTC, as the firm currently has a Zacks Earnings ESP of 2.82%, so another beat could be around the corner.

This is particularly true when you consider that INTC has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that INTC could see another beat at its next report, especially if recent trends are any guide. 

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