Intel still looking very good to some analysts
A service of Semiconductor Business News, CMP Media Inc.
Story posted 9 a.m. EST/6 a.m., PST, 7/15/99
SAN FRANCISCO--Despite some Street disappointment in Intel Corp.'s second quarter earnings yesterday, at least one analyst following the chip giant hadn't changed his mind about the company's outlook.
"As [we] forecast, Intel reported lower-than-expected earnings-per-share of 51 cents," commented Daniel T. Niles, senior semiconductor devices analyst at BancBoston Robertson Stephens here.
"Going forward," he said, "we [are maintaining] our Street-low fiscal 1999 [earnings forecast] of $2.19 and fiscal 2000 earnings-per-share estimate of $2.40." That means "we are maintaining our long-term attractive rating," he added.
Niles did take issue with one Intel prediction. "Intel expects flat sequential ASPs and a nearly $2 million quarter-to-quarter unit increase," he noted. "While we believe the unit forecast is possible, assuming Intel maintains market share versus AMD, we believe [maintaining] flat ASPs will be hard, given that AMD will be shipping Athlon [the K7 processor] in August."
"The only way [for Intel] to maintain market-share is through price. We believe that you cannot have both a unit uptick and price stability," Niles said. "We therefore maintain our cautious stance with the stock going into the summer."
204.247.196.14 |
