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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Kim who wrote (85558)	7/13/1999 8:27:00 PM
From: lanac	Read Replies (2) \| Respond to of 186894

from smartmony.com The chip giant reported earnings per share of 51 cents a share after the closing bell Tuesday, two cents below the Street's forecast. The company reported $1.75 billion in net income and a 14% increase in revenue to $6.75 billion. The shares fell another $2 in after-hours trading from today's close immediately following the news, but then rose to about $66. "As expected, second quarter revenue reflected a seasonal slowdown, and we look forward to a strong second half," said Intel president and CEO Craig Barrett in a press release. CIBC World Market's Ken Pearlman, a Wall Street Journal All-Star analyst said that revenue and net income were lower than expected, but not by much. "Overall, I don't believe there were major surprises anywhere," he says. In fact, earnings per share actually came in closer to the whisper number, which was lower than the consensus estimate. A strong outlook for the second half of the year was expected. "They've had a horrible first half. It's no surprise that they say they're going to have a good second half," he says. Still, Pearlman says that the company's fundamentals don't merit a rating higher than a Hold. The company reported first-quarter earnings in 1997 of 55 cents. Now, ten quarters down the line, earnings are less than that. Given that, and the stock's price, there are better places for investors to put their money, he says. For example, for a programmable logic play, Pearlman likes SmartMoney pick Lattice Semiconductor (LSCC). So what can investors expect to see from Intel's stock tomorrow? "I think the stock's going to go up," Pearlman says. He says that he will trim his future earnings estimates, but he expects his bullish colleagues to put the best spin on the company. Admittedly a bit cynical on Wall Street's treatment of the chip maker, he says, "No one is going to say anything bad about Intel." MR --------------------------------------------------------------------------------