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Intel Preview


Some color from the Street - now go make up your own mind!


Intel (INTC) to report 1Q Tuesday 4/19. Expect press release at 4:15 ET

Conf call 5:30 ET

or dial: 877.479.8713 pw 5281775

Street Consensus

1Q 31c / 9.31bb 2005 1.29 / 37.67bb

2Q 28c / 8.89bb 2006 1.45 / 40.33bb

Company Guidance as of 3/10/05

1Q Revenue: between $9.2 -9.4 billion (mid point 9.3 up fm 8.8 -9.4 billion, mid pt 9.1).

1Q Gross Margin: 57%, plus or minus a point.

All other expectations unchanged.

Company Guidance at of 1/11/05

1Q Expenses (R&D plus MG&A): $2.5 -2.6 billion

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

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

1Q Gains from equity investments and interest: $100 million.

2005 Tax rate: 31 percent.

1Q Depreciation: $1.2 billion, plus or minus $100 million.

2005 Depreciation: $4.4 billion, plus or minus $100 million.

1Q Amortization of acquisition-related intangibles: $40 mm and approx $120mm 2005.

Recent Street Commentary

First Boston: 32c / 9.33bb Supply chain cks point to a sluggish March and slightly below normal seasonal demand. Expect Q2 close to their 27c / 8.8bb and Q2 gm's 56%+/-.

Merrill Lynch: 31c / 9.3bb, expect seasonal qtr. For Q2, look for a sharper than seasonally normal decline as a result of the tougher comparison w/ a 14 week Q1. Q2 gm's 55.6%. Neutral rating.

Bernstein: 31c / 9.3bb. Q2 guidance may be below consensus. Their est is 26c / 8.79bb Expect 65nm start-up costs to increase sequentially fm Q1 to Q2. Anticipate strong 2H. Full yr 1.30 / 37.7bb. Valuation attractive at these levels.

Bear Stearns: estimates $9.3B. See gross margin 57%, in-line with guidance. Believe INTC's Q1 MPU shipments were consistent with normal seasonality. Believe seasonal softness in Q2 is factored into price. Remain positive on 2H05. Reiterate outperform.

Morgan Stanley: see most companies meeting/slightly beating expectations and see low- to mid-single-digit rev. growth guidance. However, see DRAM pressure and seasonal weakness to have an impact on INTC Q2 revs, which will impact overall industry revenues in Q2.

Pacific Crest: reduces ests. The firm expects an inline Q1. Lowers Q2 estimates to $0.26/$8.7B from $0.28/$8.9B vs. FC $0.28/$8.90B. Cites weak desktops. Lowers f05 estimates to $1.26/$37.35B from $1.32/$38.1B vs. FC 1.29/$37.07B. Lowers f06 estimates to $1.45/$40.05 from $1.48/$40.4B vs. FC $1.45/$40.35B.

JMP Securities: The firm sees the potential for better than expected strength in PC/server processor demand. JMP looks for EPS of $0.32 and revenue of $9.3B

A.G. Edwards & Sons: Reit Buy/Agressive - We have high confidence in our $9.3 billion revenue estimate for the March quarter and think that robust PC demand might even result in Intel beating this number.

CIBC World Markets Corp: Reit Sector Performer - We remain positive on INTC ahead of 1Q05 results, though we believe numbers for March and guidance for June will be profoundly unexciting. We expect commentary to reflect seasonal PC demand--never too encouraging in the Q2--affected slightly by Intel s extra 14th week in 1Q05.

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