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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Ibexx who wrote (4895)11/8/1996 12:21:00 AM
From: Harry Landsiedel   of 186894
 
AOL's Motley Fool took the numbers from Intel's press release and calculated a 4Q eps of $1.85. Key figures were: Revenue: $5,911 (+12.5% over 3Q), 58.5% margin, expenses $1,210MM, interest income $98MM, taxes $821MM (35% rate). Net income $1,525MM/830MM shares.

A $1.85 4Q eps would give Intel an annual eps of $5.52 based on my calculations. That's up 40% over 1995. Intel would need to bump earnings by about 29% to hit $7.10 in 1997.

The key for 1997 is how sustainable is Intel's growth rate if the worldwide growth in PC's is estimated to be 17%-20% per year?

Clearly the recent 3Q results and the press release indicated that Intel is breaking out of the 20% growth rate pattern that has been a general consensus for most of this year. Is this a short term burst (1-2 years) or are we looking at a sudden escalation in demand? I would be interested in your opinion and others on this critical question.

HL
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