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

To: Harry Landsiedel who wrote (105794)	7/18/2000 12:47:31 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Harry, Other number I've seen are $.71 and $.99 (ML I believe). One thing I'm not sure of is if the analysts are including the motherboard recall charge in the operating numbers, or in the numbers with the cap gains (as cibc did). As the charge is about .02 per share, it could cause some confusion when the headline numbers come out. CC will be interesting, for a number of reasons. John

To: Harry Landsiedel who wrote (105794)	7/18/2000 1:44:14 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Investors to dissect Intel earnings By Janet Haney, CBS.MarketWatch.com Last Update: 12:56 PM ET Jul 18, 2000 NewsWatch Latest headlines SANTA CLARA, Calif. (CBS.MW) -- Wall Street may place Intel under a microscope Tuesday, in order to dissect second-quarter earnings from the world's largest chipmaker. Extra attention will be given to the numbers since the Santa Clara, Calif. company (INTC: news, msgs) said it expects interest and other income to total $2.3 billion in the period, a jump from its previous guidance of $725 million. Intel also divulged that it will take a charge of $200 million, or 2 cents a share. Intel will report quarterly results after the market close on Tuesday. Adding to its list of proclamations, Intel said in May that a flaw in a tiny motherboard chip could cause problems in hundreds of thousands of computers already in the market that use synchronous dynamic random-access memory-type computer memory. Furthermore, second-quarter results will be adjusted to reflect a 2-for-1 stock split, payable July 30. Wall Street analysts reacted to Intel's news by including the stated gain in their earnings per share estimates. Although, not all analysts that follow the tech powerhouse adjusted their earnings model. Sudeep Balain, an analyst at Chase H&Q, kept his guidance for Intel at 71 cents a share. This contrasts with the revised First Call prediction - a consensus from 21 analysts - of 98 cents per share, including gains and excluding goodwill, vs. 51 cents a share the year earlier. "Institutional investors and individual investors, in my mind, are served best if the EPS number to focus, is the earnings per share [that] are coming from operations," Balain commented. On the other hand, Greg Mischou, analyst at UBS Warburg, expects earnings of 99 cents a share, including gains, on sales of $8.1 billion. He also sees potential for upside to his revenue forecast. "Intel ended up having a good June quarter. We definitely saw momentum picking up as they went through the quarter." Greg Mischou UBS Warburg "Intel ended up having a good June quarter. It got off to a slow start," Mischou said. "We definitely saw momentum picking up as they went through the quarter." Likewise, Dan Scovel, semiconductor analyst at Needham & Co., forecasts earnings of 98 cents a share, with sales of $8.02 billion. "The actual numbers are going to be sliced and diced and people are going to be looking a couple of different ways at it," Scovel added. Intel, a component of the Dow Industrial Average and the Nasdaq, hasn't been affected by all the changes in earnings' forecasts, as it hit an all-time high of 147 1/2 during trading July 17. Its rival, Advanced Micro Devices (AMD: news, msgs), will report its second-quarter results July 19. Analysts polled by First Call predict the No. 2 maker of microprocessors will turn a profit of $1.14 a share, compared with a loss of $1.10 per share in the year-ago period. Mischou pointed out that the key things to watch for in Intel's second-quarter earnings release are the top line performance and gross margin performance, as well as its outlook for the September quarter. Scovel will keep his eye on the microprocessor unit count in the second quarter, following supply constraints. Merrill Lynch analyst Joe Osha believes microprocessor sales will make up 81 percent, or $6.49 billion, of Intel's total revenue in the period. In the second half of the year, Mischou said he'll watch for strength in Intel's server segment, as well as strength in the desktop deployment of Microsoft's (MSFT: news, msgs) Windows 2000. -------------------------------------------------------------------------------- Janet Haney is a reporter for CBS.MarketWatch.com.