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

To: SisterMaryElephant who wrote (143034)	9/7/2001 1:41:50 AM
From: Gary Ng	Read Replies (1) \| Respond to of 186894

Steve, Re: Don't the analysts realize that Intel, not AMD, is the influencing indicator? The rationale behind this line of thinking is that they(including those on the mod AMD thread) believe AMD is a better run company and has better product so if AMD can't handle the situation, Intel would only be worse as it has a much larger market share which is unwarranted. If no one wants the superior Athlon at lower price, who cares about the inferior PIII and P4 that is more expensive? gary

To: SisterMaryElephant who wrote (143034)	9/7/2001 7:03:24 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Steve, Here are some of the analyst reactions to last evenings update, with the usual glass half empty slant: Analysts still see risk for Intel Chipmaker doesn't warn on quarter, avoiding 'worst-case' By Emily Church, CBS.MarketWatch.com Last Update: 5:59 AM ET Sept. 7, 2001 LONDON (CBS.MW) - Weighing in on Intel Corp's mid-quarter update after the close, analysts told clients Friday they still see risk to the chipmaker's financial targets in September. Intel (INTC: news, chart, profile) said revenue for the third quarter is expected "slightly below the midpoint" of its target range of $6.2 billion to $6.8 billion. Shares rose in after-hours trading on relief the chipmaker didn't lower the estimates further. See full story on Intel's update Shares were trading at $26.60 in Europe early Friday, up 50 cents from the New York close but easing from a $26.75 rise on the overnight. Intel's CFO Andy Bryant indicated that August and July had exceeded expectations, but that September remains "critical for the quarter." Analysts seized on the statement. "While Intel held to the lower end of its guidance, we still believe there is risk to the remainder of the third quarter and flatter than normal growth in the fourth quarter, around 10 percent quarter-over-quarter vs. mid to high teens," said Charlie Glavin at Credit Suisse First Boston. "At some point, Intel's statements of July and August being better than plan and the PC original equipment makers stating back to school is below plan have to be reconciled," Lehman Brother's Dan Niles told clients. He cut his revenue estimate earlier in the week to $6.35 billion, flat with the second quarter. CSFB's Glavin left his estimates unchanged for the third quarter for earnings of 9 cents a share and revenue of $6.27 billion, and maintained his "hold" rating on the stock amid concerns Intel remains richly valued. "We still believe Intel has growth opportunities during 2002-2003, mainly from laptops and servers, but given the maturing nature of the PC industry and related processors and thus a lower long-term growth rate of 10-12 percent, we believe that Intel's current valuation... is rich." The stock trades at 52 times his estimates for 2002 earnings per share. JP Morgan's Eric Chen was positively upbeat relative to his peers, telling clients "the tone of the Intel mid-quarter update was relatively positive, with a general theme of stabilization reiterated by management." He lowered his earnings-per-share estimate for the quarter to 11 cents from 13 cents. Merrill Lynch on Friday lowered its estimate for earnings per share for the third quarter to 9 cents from 10 cents and to 14 cents in the fourth quarter from 15 cents. Analyst Joe Osha said he expects weaker gross margins to impact profits. He cut revenue estimates on Thursday to $6.3 billion for the quarter. "While Intel was pleased with July and August results, it is difficult for us to believe that business is on target as they have just lowered expectation," Osha said. Intel's guidance on Thursday was largely in line with the consensus estimate. Analysts surveyed by Thomson Financial/First Call expected revenue of $6.4 billion, on average. They are expecting earnings excluding charges of 10 cents a share. Emily Church is London bureau chief of CBS.MarketWatch.com.