Intel Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Intel (NASDAQ:INTC) will unveil its latest earnings tomorrow, Thursday, January 17, 2013. Intel develops advanced integrated digital technology products for industries such as computing and communications.

Intel Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 45 cents per share, a decline of 29.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 45 cents during the last month. Analysts are projecting profit to rise by 13.5% compared to last year’s $2.11.

Past Earnings Performance: Last quarter, the company beat estimates by 10 cents, coming in at net income of 60 cents a share versus the estimate of profit of 50 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 14.3% to $2.97 billion (58 cents a share) from $3.47 billion (65 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.5% to $13.46 billion from $14.23 billion.

Here’s how Intel traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

INTC

Stock Price Performance: Between November 13, 2012 and January 11, 2013, the stock price had risen $1.72 (8.5%), from $20.28 to $22. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 6.4% (+$1.66) over that span. It saw one of its worst periods between November 1, 2012 and November 14, 2012 when shares fell for 10 straight days, dropping 10.3% (-$2.30) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.93 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.45 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.4% to $11.95 billion while assets decreased 10.7% to $23.01 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 21.2% in the fourth quarter of the last fiscal year, 0.5% in the first quarter and 3.6%in the second quarter before dropping in the third quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 13.4% in the first quarter, by 4.3% in the second quarter and again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 21 of 36 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts predict a decline of 0.9% in revenue from the year-earlier quarter to $13.76 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)