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Intel's Strong Q1 Results to Power Semiconductor ETFs
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Intel (INTC - Free Report) , the world’s largest chipmaker, reported stronger-than-expected Q1 results after the market closed yesterday. The company surpassed the estimates for both revenues and earnings, and provided an upbeat outlook.
Intel Q1 Earnings in Focus
Earnings of 87 cents per share came in 16 cents above the Zacks Consensus Estimate and improved from the year-ago earnings of 66 cents. Revenues rose 13% year over year to $16.1 billion and were well ahead of our estimated $15 billion.
Better-than-expected results were credited to the biggest-ever quarterly jump in Intel’s data center business, growing Internet of Things business and steady growth in its personal computer business. Notably, data center and Internet of Things revenues climbed 24% and 17% year over year, respectively (read: Should You Snap Up Downtrodden Semiconductor ETFs Now?).
Going forward, Intel expects revenues in the range of $15.8-$16.8 billion, up 10% from the year-ago quarter, and earnings per share of 80-90 cents for the second quarter. The mid-point is well above the current Zacks Consensus Estimate of $15.54 billion for revenues and 80 cents for earnings per share. For 2018, the company expects revenues to grow 8% to $66.5-$68.5 billion while earnings per share to increase 11% to $3.65-$4.04. The Zacks Consensus Estimate is currently pegged at $64.82 billion for revenues and $3.54 for earnings per share.
Following the solid earnings release, shares of Intel jumped more than 7% to its highest in at least five years in after-market hours on elevated volume. The smooth trading is expected to continue in the days ahead given that Intel has a Zacks Rank #3 (Hold) and a VGM Score of B. Additionally, the stock belongs to the top-ranked industry (top 17%).As a result, investors could tap the solid Q1 Intel results and the upcoming surge in its share price with the help of ETFs that have a large allocation to the biggest semiconductor company (see: all the Technology ETFs here).
This ETF follows the PHLX SOX Semiconductor Sector Index and offers exposure to 30 U.S. firms with INTC taking the top spot with a 9.1% allocation. The fund has amassed $1.4 billion in its asset base and trades in volume of more than 693,000 shares a day. The product charges a fee of 48 bps a year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
This fund offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. Holding 30 stocks in its basket, Intel is the top firm accounting for 8.9% share. FTXL has accumulated $42.6 million in AUM and trades in average daily volume of 18,000 shares. It charges 0.60% in expense ratio and has a Zacks ETF Rank #1 (read: 6 Solid Reasons Why You Should Buy Semiconductor ETFs).
This fund provides exposure to 26 securities by tracking the MVIS US Listed Semiconductor 25 Index. Intel occupies the top position with 8.1% of assets. The product has managed assets worth $940.3 million and charges 35 bps in annual fees and expenses. It is heavily traded with volume of more than 5.5 million shares per day and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
PowerShares Dynamic Semiconductors Fund (PSI - Free Report)
This fund tracks the Dynamic Semiconductor Intellidex Index, holding 30 securities in the basket. Intel occupies the top position and makes up for 5.9% share in the basket. PSI has a lower AUM of $323.1 million and sees a moderate average daily volume of about 101,000 shares. It charges a higher 63 bps in annual fees and sports a Zacks ETF Rank #1 with a High risk outlook (read: Should You Buy the Dip in Chip ETFs Ahead of Q1 Earnings?).
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Intel's Strong Q1 Results to Power Semiconductor ETFs
Intel (INTC - Free Report) , the world’s largest chipmaker, reported stronger-than-expected Q1 results after the market closed yesterday. The company surpassed the estimates for both revenues and earnings, and provided an upbeat outlook.
Intel Q1 Earnings in Focus
Earnings of 87 cents per share came in 16 cents above the Zacks Consensus Estimate and improved from the year-ago earnings of 66 cents. Revenues rose 13% year over year to $16.1 billion and were well ahead of our estimated $15 billion.
Better-than-expected results were credited to the biggest-ever quarterly jump in Intel’s data center business, growing Internet of Things business and steady growth in its personal computer business. Notably, data center and Internet of Things revenues climbed 24% and 17% year over year, respectively (read: Should You Snap Up Downtrodden Semiconductor ETFs Now?).
Going forward, Intel expects revenues in the range of $15.8-$16.8 billion, up 10% from the year-ago quarter, and earnings per share of 80-90 cents for the second quarter. The mid-point is well above the current Zacks Consensus Estimate of $15.54 billion for revenues and 80 cents for earnings per share. For 2018, the company expects revenues to grow 8% to $66.5-$68.5 billion while earnings per share to increase 11% to $3.65-$4.04. The Zacks Consensus Estimate is currently pegged at $64.82 billion for revenues and $3.54 for earnings per share.
Following the solid earnings release, shares of Intel jumped more than 7% to its highest in at least five years in after-market hours on elevated volume. The smooth trading is expected to continue in the days ahead given that Intel has a Zacks Rank #3 (Hold) and a VGM Score of B. Additionally, the stock belongs to the top-ranked industry (top 17%).As a result, investors could tap the solid Q1 Intel results and the upcoming surge in its share price with the help of ETFs that have a large allocation to the biggest semiconductor company (see: all the Technology ETFs here).
iShares PHLX Semiconductor ETF (SOXX - Free Report)
This ETF follows the PHLX SOX Semiconductor Sector Index and offers exposure to 30 U.S. firms with INTC taking the top spot with a 9.1% allocation. The fund has amassed $1.4 billion in its asset base and trades in volume of more than 693,000 shares a day. The product charges a fee of 48 bps a year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
First Trust Nasdaq Semiconductor ETF (FTXL - Free Report)
This fund offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. Holding 30 stocks in its basket, Intel is the top firm accounting for 8.9% share. FTXL has accumulated $42.6 million in AUM and trades in average daily volume of 18,000 shares. It charges 0.60% in expense ratio and has a Zacks ETF Rank #1 (read: 6 Solid Reasons Why You Should Buy Semiconductor ETFs).
VanEck Vectors Semiconductor ETF (SMH - Free Report)
This fund provides exposure to 26 securities by tracking the MVIS US Listed Semiconductor 25 Index. Intel occupies the top position with 8.1% of assets. The product has managed assets worth $940.3 million and charges 35 bps in annual fees and expenses. It is heavily traded with volume of more than 5.5 million shares per day and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
PowerShares Dynamic Semiconductors Fund (PSI - Free Report)
This fund tracks the Dynamic Semiconductor Intellidex Index, holding 30 securities in the basket. Intel occupies the top position and makes up for 5.9% share in the basket. PSI has a lower AUM of $323.1 million and sees a moderate average daily volume of about 101,000 shares. It charges a higher 63 bps in annual fees and sports a Zacks ETF Rank #1 with a High risk outlook (read: Should You Buy the Dip in Chip ETFs Ahead of Q1 Earnings?).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>