Maya<<Analysts were clearly disappointed with the forecast and many were planning to cut earnings estimates. They said they viewed the fourth quarter as coming in line with expectations, because of a few factors. Intel had a lower-than-expected tax rate,higher interest income and it spent less than it forecast on research and development and sales general and administrative expenses.>.
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Just checked 1st Call, Q1 est is .93. The guidance calls for flat rev., lower GM (Intel says this EVERY Q), but also lower G&A exp, and a lower tax rate going forward, as well as the increased rev from investments as they now have ~ 11B sittin around. I can't imagine that after all this guidance, the analysts believe that all this doesn't add up to .93. Also, the line where they said they expect Intel's price to fall tomorrow, is something I can't imagine any credible analyst would say on the record, even if he/she believed it. That was a totally bearish piece, beginning with the line "slightly higher than expected earnings". 9% above est is not slightly, .01 or .02 is slightly. .08 is a thumping, though not a blowout. Remember these terms, you'll be quizzed :-)
Dave |
