Intel (INTC) is expected to report Q2 earnings after the market close on Tuesday, July 17, with a conference call scheduled for 5:00 pm ET. The consensus estimate is 52c for EPS and $13.56B for revenue, according to First Call. Intel's Q2 revenue forecast is for $13.1B-$14.1B. Intel's earnings report will reveal details about the health of the semiconductor market and shed some light on the sudden drop-off in demand some are seeing in the IT space. Jim Cramer predicts a tough quarter, but wonders if the stock gets hit given its recent decline, its "terrific" 3.5% yield and its longer-term prospects for new products in the pipeline. Cramer said, "If Intel doesn't drop on a less than stellar quarter, that's the clear call to buy -- not sell -- tech." Analysts have been trimming their expectations for Intel recently, as PC sales continue to stagnate. Intel shares have come off the multi-year high it hit in May. However, many analysts are in the camp that believes rival AMD's (AMD) recent earnings pre-announcement is largely company-specific, although they believe the overall PC/notebook demand is at best tepid. Investors will be looking for reasons to be excited about the stock again. The market seems to now widely expect Intel to guide Q3 below consensus -- perhaps to $14.0B-$14.5B, but expect a relief rally for almost anything other than "doomsday guidance." Stifel recently cut its 3Q revenue estimate for Intel to $14.4B, up modestly from Q2 and well below the $14.8B consensus.
The flap over Apple’s corporate tax strategy might sound like a snoozer, until you consider who makes up the difference …