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

To: Tony Viola who wrote (64300)	9/10/1998 5:21:00 PM
From: L. Adam Latham	Respond to of 186894

Tony: Re: Now can one of our high finance types turn this into estimated earnings? It's not hard. I'm not going to publish a number, but here's the steps to follow: 1. Multiply Q2's Sales by the new guidance ($5.9B +8% to +10%). 2. Multiply #1 by the Gross Margin Percentage guidance ("up a couple of points from 49%") to get gross profit. 3. Subtract Expense guidance from #2 ("7 to 8 percent higher than second quarter expenses of $1.3 billion") to get operating income. 4. Add interest guidance to #3 ("approximately $170 million") to get EBT (earnings before taxes). 5. Multiply #4 by 1 minus the tax rate guidance (1-.33=.67) to get net income. 6. Divide #5 by total outstanding shares (no guidance given, 1.769 billion at end of Q2). Adam