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Intel mid-quarter Info

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Attached is the chatter we've seen come across as far as a preview:


INTC mid qtr update Thurs 3/10 5:30 pm, expect a press release 4:15pm ET

Click here for the webcast



Company Guidance as of January 11, 2005


Q1 Revs: $8.8 billion to $9.4 billion.

Q1 Gross margin: 55%, +/- couple of points, as compared to 56% 4Q04.

2005 Gross margin: 58%, +/- a few points, as compared to 57.7 % in 2004.

Q1 Expenses (R&D plus MG&A): $2.5 billion to $2.6 billion.

2005 R&D spending: $5.2 billion, as compared to $4.8 billion in 2004.

2005 Capital spending: $4.9 billion to $5.3 billion, as compared to $3.8 billion in 2004.

Q1 Gains from equity investments and interest: $100 million

2005 Tax rate: 31 %

Q1 Deprecation: $1.2 bb, +/- $100 million. 2005 Depreciation $4.4
billion, +/- $100 million.

Q1 Amortization of acquisition-related intangibles and costs: $40 mm and $120 mm for '05.



Street Consensus


Q1 - 28c /9.14bb; 2005 1.25/37.22bb
Q2 - 27c /8.83bb; 2006 1.42/39.89bb

Street Commentary

Merrill Lynch
- expect them to narrow rev range, but don't expect mid point to move. Looking for 27c/9.1bb. gross margins 55%-see no upside fm that number. Remain neutral.

Smith Barney
- Despite weak Jan and Feb, continue to find data pts supporting an in-line to better qtr.

AG Edwards
- Think there is some possibility that tightening capacity could help gm's despite start-up charges for 65nm manufacturing. Intel will reaffirm or raise its gm's expectation for the qtr.

Deutsche Bank
- expect upside to revs guidance though cons 2Q may be a stretch. Raising 1Q to 28c fm 27c. Limited deviation fm 55% gm's. '05 raised to $1.15 fm $1.11 Hold. $24


JMP Securities
- Reit strong buy. believes INTC will narrow Q1 guidance to $9-$9.2B Expect to maintain 55% +/- 2 points for margins. Firm believes INTC should expand margins and accelerate earnings as new products come out. Firm is optimistic about rapidly improving gross and operation margins in its processor business. Price target is $30

Bear Stearns - raises Q1 revs. to $9.2B, (4.1%) seq, from $9.15B. Q1 EPS raised to $0.29 from $0.28. Raises gross margin targets to 55.5% from 55%. Firm believes INTC will revise guidance range to $9.1-$9.3B Checks in Asia indicate some softness in desktop since beginning of Q1, citing a shift towards notebooks, rather than a weakness in demand. Raise f05 to $37B/$1.24 from $36.7B/$1.21 and f06 to $39.7B/$1.35 from $39.4B/$1.32. Year-end target raised to $29 from $28.

Prudential - Raises Q1 estimates to $9.3B, (3%) seq., from $9.1%, (5%) seq. Expect company to narrow rev. guidance range around upper half of current quidance. Prudential raises Q1 gross margin est. to 55.5% from prior 55%. Firm continues to see Q2 revs. down seasonally, and are concerned about tight capacity. Reiterate neutral rating.


CIBC
- has cautious comments. The firm cites meetings with PC component vendors in Asia. CIBC indicates the vendors have provided mostly negative data points regarding PC demand for Q1 which could limit the chances for upside. CIBC advises waiting until after the mid-quarter update to add to positions. Sector performer rated.

RBC - raised numbers ahead of mid quarter taking Q1 to EPS to $0.30 on revs of $9.45 bln

INTC CEO says company is off to a good start in 2005 - Dow Jones Comments coming from the Intel Developer Forum opening in SF


No positions in stocks mentioned.

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