58.40 -0.32 (-0.54%)
After hours: 5:48PM EDT
|Bid||58.35 x 1000|
|Ask||58.50 x 4000|
|Day's Range||58.14 - 59.29|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.49|
|PE Ratio (TTM)||13.11|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||1.26 (2.35%)|
|1y Target Est||54.59|
Microsoft reported better-than-expected fiscal third-quarter financial results, which sent the stock soaring in after-hours trade.
Chip stocks outperform the broader market Wednesday following a wave of earnings beats and outlooks that hinted the sector may be creeping out of inventory oversupply issues that have dogged it for several months.
Following workforce losses and relatively low hiring numbers in recent years, Intel Rio Rancho saw a large uptick in new workers brought on in 2018. Intel hired 168 new employees at its Rio Rancho plant in 2018, up from just 30 in 2017, according to its annual report submitted to Sandoval County on Wednesday. Intel employs "approximately 1,200" and worked with 1,100 contractors in 2018, according to the report.
The Latest on 5G Equipment Vendors Nokia and EricssonNokia accused of unfair patent licensing practices Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe. Daimler, the German automotive giant behind
Intel Corp.’s new permanent chief executive should arrive to his first earnings report with a full deck of updates for investors after what is expected to be a slow start to 2019.
Boeing’s 737 MAX Crisis Hurts Its First-Quarter Earnings(Continued from Prior Part)Boeing stock plunged Before the Ethiopian Airlines crash on March 10, Boeing (BA) stock had been rallying since the beginning of this year due to growing optimism
Intel (INTC) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
As most companies in this space are expected to deliver an earnings surprise, the semiconductor ETFs therefore might continue to see smooth trading in the weeks ahead.
The Latest Buzz from the Semiconductor Sector: QCOM, INTC, AVGO(Continued from Prior Part)Apple risked falling behind in 5G raceBroadcom (AVGO) is a leading supplier of smartphone components. Its range of products to the smartphone market include
How Will Intel's Business Decisions Impact Investors?(Continued from Prior Part)Intel’s technical indicators Intel (INTC) stock made a new 52-week high on April 17 as investors reacted positively to the management’s decision to exit the 5G
The Latest Buzz from the Semiconductor Sector: QCOM, INTC, AVGO(Continued from Prior Part)Omnitek technology to complete Intel’s programmable chips businessThis month Intel (INTC) announced the acquisition of British programmable chip maker
Samsung, which now leads the market for the memory chips used in devices from servers to smartphones, said it plans to ramp up investment in semiconductors in the years leading up to 2030 to take the lead in so-called logic chips. Samsung, which is also looking to challenge Taiwan Semiconductor Manufacturing Co. in the business of making chips for other corporations, joins companies from Huawei Technologies Co. to Apple Inc. that’re increasingly devising the brains that power computing devices.
Jefferies expects continued gains for AMD, even with the stock up 50% so far this year. The firm sees AMD taking ‘material share’ from Intel’s server chip business over time.
How Will Intel's Business Decisions Impact Investors?(Continued from Prior Part)Intel’s managementIntel (INTC) began its transition from a PC-centric company to a data-centric company under the leadership of former CEO Brian Krzanich. After the
How Will Intel's Business Decisions Impact Investors?(Continued from Prior Part)About Omnitek Intel (INTC) is expanding its data-centric businesses organically and through acquisitions, and its recent acquisition is in the PSG (Programmable
How Will Intel's Business Decisions Impact Investors?Intel’s business reassessment Intel (INTC) got a new CEO, Bob Swan, on January 30, and the changes arising from the new management have started to show, as he is reassessing ongoing projects for
Intel (NASDAQ:INTC) reports earnings on Thursday afternoon on an absolute roll. Intel stock touched a 19-year high this week. And after stumbling toward the end of last year, INTC stock now has gained 25% so far this year.Source: Shutterstock Even what looks like bad news is good news. The surprise settlement between Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) last week meant the end of Intel's efforts to develop its own 5G modem. But analysts actually saw the loss of business as a positive, and INTC stock jumped higher.The question at this point, however, is just how much good news is priced in … and how much good news is left to report. Intel stock admittedly doesn't look that expensive, at a little over 12x 2020 earnings-per-share estimates. But the big run so far this year, in turn, has raised expectations and that means Intel earnings on Thursday need to be quite strong just to keep the stock at its current, elevated levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel EarningsOne plus for Intel is that expectations for the first quarter aren't particularly high. Consensus estimates project a modest decline (0.3%) in revenue year-over-year, with adjusted EPS equal to last year's 87 cents. Those estimates almost exactly match Intel's guidance for the quarter, given with Q4 results back in January. * 10 High-Yielding Dividend Stocks That Won't Wilt So if Intel was being conservative with its guidance, the company should be able to post a headline beat on Thursday afternoon. But there's more to the report than just meeting -- or beating -- expectations. Any beat means Intel was able to grow revenue and earnings -- growth that, even with the big gains of late, isn't quite priced in.And it would show that the company's "data-centric" strategy, as the company terms it, is working. Data-centric revenue accounted for 48% of the 2018 total, per the 10-K, and likely over half this year. The remainder -- sales related to PCs -- is unlikely to grow, putting pressure on the data side of the business.To be sure, Q1 earnings alone won't make or break the case for Intel stock. But they can certainly impact the narrative, particularly in the near term. An earnings beat means Intel is growing. It means the shift to data-centric products is working. And it suggests that the earnings multiple assigned to INTC could expand, moving Intel stock higher.On the other hand, however, any stumble looks dangerous. Again, Intel is up 25% this year; it has added over $50 billion in market capitalization. While the stock isn't particularly expensive, bulls clearly are looking for good news from earnings. If they don't get it, INTC stock could struggle on Thursday … and beyond. INTC Stock Looks ExpensiveI wrote at the end of 2018 that INTC stock didn't look like the best chip play for 2019, and that has actually been the case. Nvidia (NASDAQ:NVDA) has risen 41%. Shares of Intel rival Advanced Micro Devices (NASDAQ:AMD) have gained 52%. Given the optimism toward chip stocks and the pessimism with which the market closed 2018, INTC's gains this year aren't quite as much of an outlier as they might seem.That said, it does look like Intel is going to have to post a big beat on Thursday to keep this rally going. Intel stock has actually outpaced Wall Street, whose average target is just $54.59, suggesting 7%+ downside; 12x+ earnings might seem cheap, but half the business is likely to decline as PC unit sales continue to fall. While the valuation here might not seem prohibitive, there doesn't seem to be much room for error here.That's true in terms of earnings Thursday, but it's also true beyond the report. Intel is a wonderful company, but the reliance on PCs and the cyclical nature of the semiconductor space both suggest that Intel stock should be rather cheap. Earnings on Thursday are likely to provide further evidence, and that probably won't do much for INTC stock.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post It Will Take a Huge Earnings Report to Move Intel Stock Higher appeared first on InvestorPlace.
The Latest Buzz from the Semiconductor Sector: QCOM, INTC, AVGO(Continued from Prior Part)Intel was losing money in modem businessIntel (INTC) this month announced its intention to exit the smartphone modem business. That means that Intel has
[Editor's note: This story has been edited to correct a misstatement concerning the status of Watson Health.]The case for IBM (NYSE:IBM) stock seems reasonably easy to make. For one, International Business Machines stock (as it's sometimes known) is among the cheapest issues in the market. IBM stock trades at just 10x 2019 EPS estimates and yields a healthy 4.5%.Source: Shutterstock That combination seems like it should be an attractive one for the longtime tech giant. And indeed, I recommended IBM stock on two occasions last year, most recently amid a sell-off in November. There was - and still is - a "get paid to wait" argument for betting on a turnaround. I myself sold puts on IBM early last year, with the goal of either keeping a healthy premium or acquiring International Business Machines stock at a more attractive price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe problem with IBM stock, however, is that the combination of a cheap price and a solid yield has held for years now. And over that stretch, IBM shares simply have kept falling. The stock actually touched a nine-year low in December. Even with a rally of late, IBM trades more than 20% below early 2017 highs. For nearly three years now, IBM has been a yield trap. * 7 Tech Stocks With Too Much Risk, Not Enough Upside For that to change, the turnaround needs to take hold. And while there's still hope, the recent Q1 earnings report hardly showed much progress. IBM stock still is cheap - but until the underlying business improves, it very well might stay that way. IBM Falls After EarningsIBM infamously posted 23 straight quarters of declining revenue (on a year-over-year basis) before breaking the streak with the Q4 2017 report. Unfortunately, Big Blue is back to its old ways.Three straight quarters of growth have been followed by three straight quarters of decline. In those previous three reports, IBM has fallen short of consensus revenue estimates each time.In Q1, sales fell 0.9% year-over-year, even backing out currency effects. Pre-tax margins did expand sharply (some 300 basis points) but a comparison against one-time charges in the year-prior quarter was a big help. EPS, in part due to a higher tax rate, actually declined to $2.25 from $2.45 the year before.From a broad standpoint, it doesn't look like enough, and the 4%+ decline in IBM stock makes some sense. A Closer Look at EarningsThat said, looking at the quarter more closely results in an "eye of the beholder" situation. For instance, a big issue in the quarter was mainframe sales: IBM Z revenue dropped 38%, per the IBM Q1 conference call. But as The Motley Fool pointed out, that's in part due to the mainframe cycle that may rebound in 2020 or 2021 as a new product is released.At the same time, however, it was that same cycle that largely drove the three-quarter stretch of growth a year ago. Without that cycle, IBM still is a long way from keeping revenue stable.Outside of mainframe, the news looks mixed. Unsurprisingly in the current climate, IBM seeks some growth in key areas. Constant-currency cloud revenue grew 12%, per the Q4 call; that business, over the past four quarters, now has generated about a quarter of total revenue. Consulting revenues are up.But there's a bit of a "rising tide lifts all boats" phenomenon there. Cloud revenue should be rising and perhaps should be rising much faster. Different companies have different definitions of "cloud", but the 12% rate clearly lags those of other tech giants like Microsoft (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN). It's difficult from the numbers to believe that IBM is gaining market share; rather, its positioning seems to be eroding in a fast-growing market.Watson increasingly looks like a disappointment. Cloud & Cognitive Software, on the whole, grew constant-currency revenue just 2% in the quarter. However, according to a statement by IBM Watson Health spokesperson John Roderick, the company is not discontinuing its efforts here. Instead, IBM will continue to focus its efforts on existing Watson for Drug Discovery customers:"IBM is not discontinuing its Watson for Drug Discovery offering, and remains committed to its continued success for clients currently using the technology," Roderick told InvestorPlace. "IBM is focusing its resources within Watson Health to double down on the adjacent field of clinical development where the company sees an even greater market need for its data and AI capabilities."Indeed, IBM is growing in seemingly hot areas like cloud and AI. That said, it's declining elsewhere and not growing fast enough where it should be. It certainly is not keeping pace in stronger end markets. As those markets slow and we've already seen cloud worries hit chip stocks like Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) - IBM's growth will slow, too. What does the story here look like then? How to Play IBM StockThat said, IBM still is cheap, and I'm not sure the case is terribly different from what it was a year ago. There's still hope; there are still valuable businesses in-house, and the acquisition of Red Hat (NYSE:RHT) should help revenue and profit growth (though interest expense will limit the initial bottom-line contribution).For now, there's enough to see International Business Machines stock muddling through and maybe even to see the dividend as attractive. It's worth noting that other low-growth/turnaround tech plays, Oracle (NYSE:ORCL) and Cisco Systems (NASDAQ:CSCO) being the two best examples, have soared of late. Those companies have shown a bit more promise, but they also highlight the potential upside here if IBM can change the narrative.The catch remains, however. For real upside in its shares, IBM has to change the narrative and Q1 wasn't enough to do that. Taking the longer view, it's difficult to ignore recent history, and unwise to buy IBM stock simply because it's cheap. It's been cheap for a while, and that's done little for IBM shareholders.Selling puts (or covered calls) can hedge exposure, and lower the effective price here; that maybe makes IBM more attractive. At a certain point, IBM simply has to drive growth one way or another. Investors have been waiting a long time for that to happen and after Q1, they're still waiting.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post IBM Stock Keeps Moving Sideways With No End in Sight appeared first on InvestorPlace.
The Latest Buzz from the Semiconductor Sector: QCOM, INTC, AVGO(Continued from Prior Part)Qualcomm and NXP split over 5G connectivity in vehicles Qualcomm (QCOM) and NXP Semiconductors (NXPI) nearly merged their operations last year, as they seemed
Focals are the best smart glasses to hit the market so far. Backed by Amazon and Intel, they start at $600 and are made by a company called North. CNBC's Adam Isaak tried them out for a couple weeks. Watch the video to see his take on Focals' smart features and shortcomings.