Fourth Quarter Earnings Due Out for Intel Corp
- By Alberto Abaterusso
Intel Corporation (INTC) will announce the earnings for the fourth quarter of 2017 on Thursday after the market closes.
Analyst forecasts show the company, which is headquartered in the Silicon Valley, will close the quarter with a net earnings of 86 cents per share.
Warning! GuruFocus has detected 6 Warning Signs with INTC. Click here to check it out.
The intrinsic value of INTC
Source: Yahoo Finance
Fourth quarter earnings are backed on revenue that analysts predict at $16.34 billion, a 20% decline from revenue for the fourth quarter of 2016.
Source: Yahoo Finance
A total of 32 analysts surveyed estimated revenues for the quarter within a range of $16.3 billion to $17 billion.
If the U.S. technology giant meets consensus on revenue, it will result in a yearly figure of $62.05 billion, or a 4.30% increase compared to 2016.
The chart below illustrates the trend in Intel Corp's revenues over the last 5 fiscal years.
On Jan. 25, the company will also update shareholders with financial figures for 2017.
As of the most recent quarter, Intel Corp has about $9 billion in cash on hand and securities and debt of $31.6 billion, of which 87% is the long-term portion.
GuruFocus assigns Intel Corp. a financial strength indicator of 6 out of 10 and a profitability and growth rating of 8 out of 10.
Over the last 12 months, Intel Corp was capable of generating approximately $23 billion from its operations while the levered free cash flow was $11.43 billion.
Intel Corporation is trading at $44.82 with a market capitalization of $209.76 billion. The price-book (P/B) ratio is 2.96 versus an industry median of 2.02, the price-sales (P/S) ratio is 3.51 versus an industry median of 1.79 and a price-earnings (P/E) ratio of 15.67. The industry has a price-earnings (P/E) ratio of 22.64.
The stock is trending slightly above the median witthout the non-recurring items, according to the Peter Lynch chart:
The stock is up trending again following a pullback which ended early 2018 losing nearly 12%. For the 52 weeks through Jan. 19 the stock has gained 22%. But it has been outperformed by the S&P 500 index by 2%:
Source: Yahoo Finance
The current share price is a bit over the 52-week range of $33.23 to $47.64 per share.
Analysts have assigned a forward P/E ratio of 13.99, which is higher than the industry median of 17.73; when it is multiplied by a forecast EPS of $3.27 for full fiscal 2018, it yields a value of $45.75 per share. The forward dividend is $1.09 per share for a forward yield of 2.45%.
The current yield on Intel Corp's annual dividend is 2.40%. This is 0.64 percentage points higher than the industry median and 0.65 ppts higher than the S&P 500 current dividend yield of 1.75%.
Intel Corp is reporting approximately 4.68 billion shares outstanding, of which the Vanguard Group, Inc. is the top shareholder with 7.24% of shares.
(Disclosure:I have no positions in any security mentioned in this article.)
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 6 Warning Signs with INTC. Click here to check it out.
The intrinsic value of INTC
