Okay, Nancy,
I think INTC will beat expectation this Q by about 10 cents, because the high mix of higher margin product (P-MMX), INTC recently (last week, I think) said that 27% of computer sold this quarter was MMX based system.
INTC has been very conservative in their statments, if we use last quarter (Q4 96) as an example, at the time of Q3 earnings report, it said Q4 will be flat, you are right, however, after the defeat of Prop 2xx in CA, INTC came out and stated that Q4 will be significantly hgiher than Q3. (maybe as a reward to their supporters... :) )
At the time of this statment, the exepcted Q4 EPS was on the order of $1.60, afterwards, the expectation was rised to $2.05 in the following weeks. the actual EPS coming at $2.13
My point is that before INTC's statement, the $1.60 was way too low, which maybe is one of the reasons INTC made the statement in the 1st place. This Quarter (Q1/97), IF INTC is only expacting $0.10 over the expectation, INTC maynot make any statements at all.
IMHO.
-H.P. |
