Tag: Intel

  • This Week is Full of Q3 Earnings Reports – Stay, Watch and Monitor

    This Week is Full of Q3 Earnings Reports – Stay, Watch and Monitor

    Q3 earnings reports

    This week will start with Q3 earnings reports on Monday with Halliburton and TD Ameritrade.

    The question arises, will economic instability and trade worries continue to frighten investors? Let’s see what we can expect from the Q3 earnings reports.

    Tuesday is a day D for Procter & Gamble, McDonald’s, Kimberly-Clark, United Technologies, Chipotle Mexican Grill.

    Procter & Gamble (NYSE: PG)

     

    It will be on the schedule before the morning bell. Wall Street wants a profit of $1.24 per share and revenue of $17.4 billion to start off the company’s 2020 fiscal year.

    Procter & Gamble’s stock has grown from $81.91 in September 2018 to $117.47 now. In Septembre this year, it was $123.

    This company managed to grow earnings at a rate of 7% per year, but revenue has risen by a slight more 1% per year over the past 3 years. It is expected that the company will report earnings per share at $1,24. For the first quarter, it was $1.12. Also, the analysts’ consensus estimates revenue at $17.43 billion. That is 4.4% bigger than the $16.7 billion gained last year.

    In the last quarter of 2019, earnings rose by 17% and revenue rose by 4%. Analysts foresee earnings to increase by 7% in fiscal 2020, and revenue to increase by 3.5%. The return on equity was 23.9% and a profit margin of 21.9% which is solid for the management’s effectiveness.

    Yes, someone may say it isn’t so good if compare with some high-tech stock, but Procter & Gamble is giant, one of the oldest in the US and the consumer packaged goods company.

    McDonald’s (MCD)

     

    It looks like Mickey D’s hits an increase in third-quarter profits and sales. Investors will like to know how McDonald’s will capitalize on two new trends such as the chicken sandwich craze and the demand for meat-alternative burgers. In September, McDonald’s began testing a Beyond Meat plant-based burger in Canada. 

    McDonald’s is scheduled to report earnings on Tuesday, Oct. 22, before the market bell. According to analysts’ consensus estimate, the company is expected to report $2.21 a share profit on sales of $5.49 billion.

    McDonald’s shares are displaying peaking and finished the week at $208.50. 

    It looks that new products such as all-day breakfast or doughnut sticks attracted new consumers and Mickey D’s global sales gain a great increase. Investments in new technologies continue to pay off and are increasing traffic. Good news for investors because share momentum again revives.

    On Wednesday Ford is scheduled for Q3 Earnings Reports

    Ford Motor Company (NYSE:F)

    It will release Q3 earnings on October 23, after the market close. The fears among investor is great. The largest automakers is challenging difficulties in improving demand for its cars. Analysts forecast that the company will report $0.26 a share profit on sales of $36.86 billion.

    Ford has several very hard years behind. After so many successful years, this carmaker giant is forced to restructure because the demand for its sedan cars is decreased.

    This restructuring will result in cutting salaried jobs, some oversea factories may be closed and also the car dealer. Ford has to build the capacity to manufacture electric and driverless cars if wants to stay in the focus of buyers. And yes, the management already took some steps toward this. But the company’s shares are still under pressure and currently are traded at $9,29. At the end of the last trading week, the stock rose by 2%.

    Thursday is for Intel’s Q3 Earnings Reports.

    Intel (NASDAQ:INTC)

    Q3 Earnings Reports

     

    The globe’s largest chipmaker will also come under intense analysis when it reports earnings on Thursday, Oct. 24. It is scheduled after the close. According to analyst consensus, it is expected to report $1.23 a share profit on revenue of $18.02 billion.

    Its last report showed that the company is able to outdo everyone’s expectations. Over that period Intel Intel profited from growing demand for personal computers, and sales of higher-priced server chips. Investors will check is this semiconductor giant was able to maintain that demand surge in Q3. Also, they would like to know what are the company’s plans for the end of the year.

    Intel shares were closed at $51.36 on Friday. But have underperformed the benchmark S&P 500 Index this year. The main reason is concerns due to the trade war. If it escalates and China raises tariffs it can be tricky for this company because China is a major semiconductor market.

    Coming Q3 earnings reports could help exclude some of those questions.

    Bottom line

    This week is overflowing with questions about whether economic instability and trade worries will continue to scare investors. It will be a very hard week for many companies. What investors can do is to watch and monitor to be able to react if it is necessary.

     

  • Does Intel Have Blues?

    Does Intel Have Blues?

    2 min read

    Intel exit from mobile phone modem

    The Big Blue’s quarterly earnings report is out, first after the appointment of new CEO, Bob Swan. Quarterly earnings for Q1 are slightly above the analysts’ expectations.

    But the Intel is expecting 2019 yearly earnings to reach $69B, $2B below analysts’ projections. Also, Intel has announced the exit from the market for fifth-generation mobile phones modems, thus ceding that market to other competitors.

    But not all is bad for Big Blue, as they have announced that the Sunny Cove 10-nanometer microarchitecture of processors will be launched by the end of this year, just three years later than it was originally planned.

    With the news of the lower projected annual revenues came to the response from the markets and the Intel’s shares fell for around 9% from $57.61 on Thursday 25th April to $52.56. In following days that trend slowed down but continued and at the moment of this writing, Big Blues stocks are traded at $51.26.

    With these price movements, Intel is certainly falling behind the rest of the S&P 500 tech companies, which have seen stock prices growing 24% on average over the previous year.

    With that being said, the question is whether the Intel is in trouble and why?

    The answer to that question is both yes and no, and the earnings report gives some clues. Intel’s main market is for the individual buyers of PC central processing units, and this is a market where the Big Blue dominates with 77% of all sales.

    Many market analysts were warning for years now that this market is struggling and the sales numbers from Intel do agree.

    Sales of the desktop and notebook CPUs are down 8% and 7% compared to Q1 2018 respectively.

    But the average selling price (ASP) is up by 7% for desktop and 13% for notebook processors. Thus the Intel’s Client Computing Group has reported 4% growth of revenue compared to Q1 2018, and its $8.6B makes more than half of the Q1 2019 revenue.

    Will this trend of growing ASP continue it is too early to say. But what is certain is that Intel will in coming months launch a new generation of CPUs. Manufactured on the much-maligned 10nm node, announced more than four years ago when the current 14nm node was launched, and just six months ago being dismissed as vaporware by some industry analytics, the code-named Sunny Cove is not promising sunny days for Intel.

    Is the change of production node solution for Intel

    The change of production node and decrease of the size of printed circuits of the CPU is supposed to bring much higher energy efficiency of the CPUs. But this decrease in size creates some serious production issues.

    Namely, the smaller the printed circuits and gaps between various elements of them are the higher are chances for errors during manufacturing. And for the past three years, Intel was working on fixing these issues and increasing the yield of usable chips they produce.

    According to some sources, Big Blue can be anything but happy with the yields at the moment. So, as it stands at the moment, Sunny Cove will be too little too late. And to add insult to injury even in this troubling PC market Intel is having problems to satisfy the demand from consumers for their CPUs as the yields of current 14nm generation are nothing to write home about.

    Datacenter revenue is down 6%, compared to Q1 2018, to $4.9B, but this is to be expected as the data center and client computing are competitors to each other, especially in the sector of the enterprise and government buyers.

    Big institutional buyers usually have to make a choice of either procuring large numbers of desktops or upgrading their data center capacities, and no one has expected that those two sectors continue growing together forever. Cloud computing revenue is up by 5% compared to Q1 2018, but that is too little to offset the decline of the enterprise revenues.

    Though the Intel is absolute market share leader in their most important segment, desktop and notebook CPUs, 2019 is not looking rosy for the Big Blue.

    Intel’s main competitor AMD has made huge strides

    Their main competitor AMD has made huge strides in regaining the ground they have lost in the previous decade. At the moment they are offering products which have comparable performances but carry considerably lower price tag than Intel’s offering, especially in the high-end niche which has the highest profit margins.

    Also, the recent announcements state that AMD is aiming for the launch of their 7nm Zen 2 architecture in mid-2019. AMD’s jump from 14nm to the 7nm production process, while skipping the 10nm step, promises 15% increase of performance and a 30% decrease of energy consumption. And this blow from AMD is going to shake the Intel much worse than the scandal surrounding fake demo CPUs at Computex 2018.

    The accountants and suits at the Big Blue know that AMD’s Zen 2 is more than competitive to anything they have in offer, and thus they are projecting lower annual revenues for 2019 than the analysts.

    Don’t waste your money!

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