Intel Corp. (NASDAQ: INTC) is set to report earnings after the close today, and this report is likely to influence everything around chips, processors, computers, and almost anything tech-related.  The chip and processor giant’s estimates from First Call are $0.25 EPS on $9.32 Billion in revenues.  At its last quarter report the company gave guidance of $9.0 to $9.6 Billion in revenues and 56% margins plus or minus.

This last quarter is already somewhat considered the throw-away quarter so the focus will be on next quarter and the guidance.  For next quarter, estimates are expected to be $0.34 EPS on $10.07 Billion in revenues, while estimates for fiscal 2008 are $1.25 EPS on $39.94 Billion in revenues.

So how does this stack up for valuations?  For starters, based upon a 1.3% rise to $20.74 and based upon a $109.4 Billion market cap, this gives a forward P/E ratio of 16.6 and also a forward valuation of 2.73-times revenues.

Options traders appear to be braced for a move of up to about $0.80 in either direction and these options expire on Friday. 

Analysts are still looking for about 27% as the average price target is still north of $26.00.

Intel is also already toward the lower-end of its 52-week trading range of $18.05 to $27.99. It also briefly traded under the $20.00 handle on two different days last week.

Once again, Intel is big enough that this will be used perhaps as the single harbinger by analysts to derive what is happening at other chip companies, the processor markets in general, and all the way up the chain to PC’s.

Jon C. Ogg
July 15, 2008

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