We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stable PC, Xeon Demand to Drive Intel's (INTC) Q3 Earnings
Read MoreHide Full Article
Intel Corp (INTC - Free Report) is set to report third-quarter 2017 results on Oct 26.
Notably, the company has a positive record of earnings surprises in the trailing four quarters, with an average surprise of 5.59%. Last quarter, the company delivered a positive earnings surprise of 5.88%.
Intel guided third-quarter 2017 revenues of around $15.7 billion (+/-$500 million), almost flat sequentially and up 3% year over year. This excludes revenues from Intel Security Group business.
The company’s results will benefit from stable PC trends and anticipated demand for newly launched Xeon Scalable processors. This will boost Client Computing Group (CCG) and Data Center Group (DCG) revenues that account for almost 56% and 30% of top line, respectively.
Moreover, Intel’s expanding presence in the rapidly-growing autonomous vehicle market is a key catalyst.
CCG — Stable PC Trend Positive
We note that segment revenue growth rate has outperformed the PC market in the last couple of quarters. Market research firms — Gartner and IDC — believe that the PC market trends are showing signs of stability, which bodes well for Intel.
However, intense competition from Advanced Micro Devices Inc (AMD - Free Report) based on an expanding product portfolio is a concern.
The Zacks Consensus Estimate for the CCG segment is currently pegged at $8.62 billion.
DCG — Purley Upgrade to Drive Growth
Intel’s newly launched Xeon Scalable (formerly known as Skylake) processors on Purley platform accelerates inference throughput for High Performance Computing (HPC), Virtual Reality (VR), AI cloud, storage, communication and Internet of Things (IoT).
Data center operators are likely to upgrade their servers from Grantley to Purley post Xeon Scalable launch. This presents significant growth opportunity for Intel. The company currently addresses almost 40% of the data center market.
The Zacks Consensus Estimate for the DCG segment is currently pegged at $4.82 billion.
We believe that the acquisition of Mobileye, which was completed during the last quarter (more than 97% shares tendered), strengthens Intel’s competitive position against NVIDIA Corporation (NVDA - Free Report) in the autonomous vehicle market.
The acquisition now enables Intel to offer almost anything related to self-driving vehicles — cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management.
Moreover, our proven model shows that Intel is likely to beat earnings due to the favorable combination of Zacks Rank #2 (Buy) and +0.06% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Stable PC, Xeon Demand to Drive Intel's (INTC) Q3 Earnings
Intel Corp (INTC - Free Report) is set to report third-quarter 2017 results on Oct 26.
Notably, the company has a positive record of earnings surprises in the trailing four quarters, with an average surprise of 5.59%. Last quarter, the company delivered a positive earnings surprise of 5.88%.
Intel guided third-quarter 2017 revenues of around $15.7 billion (+/-$500 million), almost flat sequentially and up 3% year over year. This excludes revenues from Intel Security Group business.
The company’s results will benefit from stable PC trends and anticipated demand for newly launched Xeon Scalable processors. This will boost Client Computing Group (CCG) and Data Center Group (DCG) revenues that account for almost 56% and 30% of top line, respectively.
Moreover, Intel’s expanding presence in the rapidly-growing autonomous vehicle market is a key catalyst.
CCG — Stable PC Trend Positive
We note that segment revenue growth rate has outperformed the PC market in the last couple of quarters. Market research firms — Gartner and IDC — believe that the PC market trends are showing signs of stability, which bodes well for Intel.
However, intense competition from Advanced Micro Devices Inc (AMD - Free Report) based on an expanding product portfolio is a concern.
The Zacks Consensus Estimate for the CCG segment is currently pegged at $8.62 billion.
DCG — Purley Upgrade to Drive Growth
Intel’s newly launched Xeon Scalable (formerly known as Skylake) processors on Purley platform accelerates inference throughput for High Performance Computing (HPC), Virtual Reality (VR), AI cloud, storage, communication and Internet of Things (IoT).
Data center operators are likely to upgrade their servers from Grantley to Purley post Xeon Scalable launch. This presents significant growth opportunity for Intel. The company currently addresses almost 40% of the data center market.
The Zacks Consensus Estimate for the DCG segment is currently pegged at $4.82 billion.
Intel Corporation Price and EPS Surprise
Intel Corporation Price and EPS Surprise | Intel Corporation Quote
Mobileye Buyout Improves Competitiveness
We believe that the acquisition of Mobileye, which was completed during the last quarter (more than 97% shares tendered), strengthens Intel’s competitive position against NVIDIA Corporation (NVDA - Free Report) in the autonomous vehicle market.
The acquisition now enables Intel to offer almost anything related to self-driving vehicles — cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management.
In our view, Intel’s collaboration with Alphabet Inc (GOOGL - Free Report) division, Waymo, is also a key catalyst.
Why a Likely Positive Surprise?
Moreover, our proven model shows that Intel is likely to beat earnings due to the favorable combination of Zacks Rank #2 (Buy) and +0.06% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>