Hold by Canacord is with a price target or 40 and Underperform by JMP with a target of 30. JMP seems to be off the fairway on this one.
All the "bozo" analysts raised their expectations while attempting to put a sad face on the future. How do you tell your family things are getting better so we had better expect more and tribute less.
IOT and software were over a billion by themselves. This is just the beginning,
APPLE had better come up with something revolutionary for their next Iphone. Maybe something from INTEL might help them. Too many problems with other foundries. They just don't seem to get done what they planned. The TSMC booster with the website claimed years ago that TSMC had finfet and 20nm and 14 coming....nothing ever came that was usable.
I see I hit a nerve with at least one of the bozo shorters today. Well, if you think back at your stupid posts full of negativity and spite, you might guess that you got what you deserved. Yinz were just too nasty.
Sentiment: Strong Buy
Alex don't forget INTC was going into the 20s and 30s today. loons all of them. They sure showed up in numbers and nearly everyone of them a big loser today.
a win is a win! Yesterday and today I bought quantities of FEB 36s for great prices. That helped save my dumb #$%$. In case they had good guidance I bought some Jan 17 calls yesterday only to get 10 % back on them this afternoon. The next news is the dividend. When that is announced it should spark interest.
A review of the Jan Feb 17 options clearly shows it had to move over 36.5 Just to clear out the large short term puts and not reach the huge short term calls
Sentiment: Strong Buy
I think some of these guys had short term puts they lost money on.
Sentiment: Strong Buy
OPEX for INTC has been 33 every Friday for months. It is without meaning. Too many changes happen too rapidly.
Sandy is unhappy. You cannot cheer her up. She did something stupid. Never use mortgage money to short a stock.
Sentiment: Strong Buy
and a recovery in high-margin enterprise and SOHO PC demand offset by continuing challenges in consumer PC market and operating losses in the smartphone/tablet market. Following PC client revenues increasing 4% in 2014, we expect flattish 2015 PC client revenues in 2015. In our opinion, continuing strength in enterprise PC refresh cycles, upcoming Windows 10 upgrade cycle, and a replacement cycle for consumer PCs in developed economies is offset by continuing weakness in emerging markets.”
Mark Lipacis, Jefferies & Co.: Reiterates a Buy rating, and a $50 price target. “INTC’s Data Center Group (DCG) posted 18% growth and 51% op margin in 2014. We model DCG growth to decelerate to 16% in 2015 and deliver $0.22 of EPS growth in 2015. Along with lower shares ($0.13 of EPS growth), and lower Mobile losses ($0.13) partially offset by other losses, we model INTC EPS to increase by $0.44 in 2015, well ahead of Consensus’ $0.11 growth. We would use the aftermarket weakness as a particular buying opportunity [...] To say DCG is a hidden gem is an understatement. DCG posted 25% YY growth and 55% op margins in 4Q14, and for 2014 the $14 billion business posted 18% growth and 51% op margins, better than the 9- yr CAGR of 15%, as all four segments (Enterprise, Cloud, High-Performance Computing, Networking) posted growth. We think Intel’s new server cycle (Grantley) helps in 2015, but view drivers in DCG to be largely secular.
Christopher Rolland, FBR & Co.: Reiterates an Outperform rating, and a $42 price target. “Constructively, the bear case for runaway capex was once again dismayed as the company lowered spending guidance $500 million for the year. Interestingly, management was steadfast on the timing for Skylake in 2H15 (we worry a bit about the potential for a pause in PC shipments ahead of the combination of processor and Win10 OS launch). Additionally, PC revenue in 4Q14 (and 1Q15 guidance) was slightly disappointing as we worry about XP refresh tailwinds dissipating. Lastly, the Broadwell ramp appears more expensive than anticipated, creating sizable GM differences for 1Q15 (60.0% guidance versus the Street’s 61.2%), a negative in our view. Overall, while the lack of growth in PC has been discouraging, we believe that Moore’s law is considerably more durable than any one computing form factor and presents as good a business plan as any in the technology industry. We are increasingly confident that Intel can opportunistically extract value from the extra transistors afforded to it through the best silicon manufacturing operations in the world.”
Jonathan Pitzer, Credit Suisse: Reiterates an Outperform rating and a $40 price target. “INTC under-shipped PCs in C4Q, forcing bears into prevent defense – it’s more likely investors are bull-rushed by DCG growth than sacked by negative PC datapoints, and (5) lack of EPS upside to kick-off CY15, after ~20% upside during 2014, is a fair-catch but ignores conservative rev and GM guidance, improving linearity, accelerating FCF, and relentless pursuit of cash return. While a victory formation is still too early, INTC continues to block-and-tackle extremely well and we continue to see long term earnings power of $4.00 plus (C4Q14 core-earnings annualized is $3.86).”
Timothy Arcuri, Cowen & Co.: Reiterates a Market Perform rating, and raises his target to $38 from $36. “Near-term, the bear case around a PCG miss has lost much of its bite as INTC made CQ4 despite obviously burning a good bit of channel inventory. From here, it should grow more in-line w/PC mkt – not great, but removes a key fear among bears. Additionally, there is still no reason to believe DCG mo’ will slow and MCG losses are set to come down which will help fuel the narrative that things are “getting better”. Lastly, the willingness of big volume chipmakers like QCOM/AAPL to whip biz around at 14nm more than at prior nodes creates fertile ground for an improving foundry narrative as it rolls out 10nm in late ’15 (albeit we think still limited if INTC remains unwilling to release its design kits for fear of relegating its leading edge process lead). Overall though, we still can’t see LT EPS power much better than $3.40 (writing MCG losses to zero (hardly a slam-dunk), and -2% and 13% LT growth for PCG and DCG respectively). In our view, this implies a $44 stock at best and a lot has to go right.”
Stacy Rasgon, Bernstein Research: Reiterates an Underperform rating, and a $30 price target. “So, have we seen the “air pocket?” Perhaps. To spin things positively, our channel analysis (roughly updated for Q4) now suggests the company did in fact undership the end market (likely below original expectations) meaning it could have come and gone, and data center strength is somewhat making up for what appears to be a genuine PC shortfall. To apply negative spin, the magnitude of under-shipment in the 2H appears less than what would ordinarily be typical, Intel’s unit shipments still remain well above market data on a YoY basis, and account receivable DSOs increased sharply [...] It seems clear that at least some of the “air pocket” dynamics we were looking occurred last night (though supported as they were by data center upside); and as such, it is fair to say that we have a bit less conviction on the immediate air pocket-driven short call following the report. That being said, there remains uncertainty as to whether there is more to come, as well as (potentially alarming) DSO dynamics, greater demands on the the 2015 DCG trajectory, and mobile economics which remain astonishingly bad. Additionally, we expect no positive revisions as a result of the report, and valuation remains elevated. At this time, we maintain our underperform rating.”
Cody Acree, Ascendiant Capital Markets: Reiterates a Sell rating, and a $24 price target. “Overall, it looks as though the PC market wrapped up a fairly healthy 2014, largely driven by the temporary enterprise upgrade cycle on Microsoft’s ending of Windows XP support. INTC’s PC segment sales were up 3% annually in Q4 to $8.9 billion, which we believe was below consensus estimates of $9.2 billion. As we’ve heard from many of our PC OEM contacts, it looks as though the upgrade cycle is tapering off and we expect a return of a secular declining PC market in 2015. With INTC expecting mid-single digit 2015 overall top-line growth, the company will be increasingly reliant on strong data center performance and growth of IoT.”
James Covello, Goldman Sachs: Reiterates a Sell rating, and a $23 price target. “We maintain a Sell rating on the stock as our positive view on Intel’s management team and technology is more than offset by lagging fundamentals and expensive valuation [...] We continue to believe EPS will be pressured by structural challenges in the PC market. Despite doubling capex 2011-2015E, Intel’s revenue, EPS and ￼￼￼￼￼￼￼FCF have only grown at 2%, -2% and 0% CAGRs respectively.”
By Tiernan Ray
Shares of Intel (INTC) are up 12 cents at $36.31, rebounding from last night’s after-hours loss, following a Q4 EPS beat and a forecast that was below Street expectations.
CEO Brian Krzanich went on CNBC’s “Squawk Box” this morning to field questions about PCs and other matters.
Estimates and price targets are mostly staying put this morning. The bulls are convinced that Intel having “under-shipped” the PC market knocks out one leg of the stool for the bears’ position, while the 15% jump in server chip shipments in the quarter is an indisputable bright spot that both sides seem to agree will continue for a while to come.
David Wong, Wells Fargo: Reiterates an Outperform rating, and a $40 to $50 valuation range. “We are very impressed with Intel’s December quarter result and the company’s 2015 plans. Intel reported gross margin of 65.4% for its December quarter, more than a percentage point above the midpoint of its original guidance, with its data center segment sales growing 25% year over year. The company trimmed its 2015 capex plan, to a new midpoint of $10 billion, comparable to the $10.1 billion Intel spent in 2014 and significantly below the $10.7-$11.0 billion capital spending in each of the years 2011-2013, with 2015 revenue that is likely to be substantially higher than in any of these years. Our 2015 estimates remain unchanged at $2.40. We are introducing our 2016 revenue estimate of $63 billion and EPS estimate of $2.80, up from our 2015 estimate of $2.40. We are reiterating our Outperform rating on Intel, which remains our Top Pick.”
Krishna Shankar, Roth Capital Partners: Reiterates a Buy rating, and raises his price target to $41 from $38. Shankar raises his 2015revenue estimate to $58.7 billion from $57.93 billion, but trims his EPS estimate to $2.45 from $2.55 given lower expected gross margin. “We expect healthy revenue growth in datacenter for server, networking, storage, software platform
Sentiment: Strong Buy
You are a true idiot. You don't even know how to make a workable sell post.