Intel Corp. ($INTC) Stock | Intel “Downside” After Earnings Report


Intel Corporation (NASDAQ: INTC)



On Thursday January 14, 2016   Intel Corporation- the world’s largest Semiconductor Company- reported their earnings for fiscal fourth quarter of 2015 that while they beat analysts expectations on revenues and actual bottom-line earnings,  they fell short of expectations in their Data Center revenues division (considered the company’s biggest area for new revenue growth). This sent the shares spiraling down to close 4.86% lower in the aftermarket session at $31.15. They closed the regular trading session at $32.74 which was up $0.83 on the day.


The official numbers looked like this ; 74 cents per share on revenues of $14.9 billion topped the 63 cents per share and $14.8 billion in sales estimates. The previously mentioned Data Center section brought in $4.3 billion for the quarter rather than the $4.4 billion they had anticipated.


Intel Technicals

INTC Chart

INTC 2 Chart

Please see the accompanying to price history charts. One is the daily price action. The other is weekly price action. You will note on the daily price action chart The areas on the upper trend line with the red arrows showing where resistance came into play and investors could not push the price share higher. It then subsequently tested the lower trend line (support) – angled at about 45 degrees – showing the green arrows. After today’s earnings report it seems as though the lower trend line will be broken to the downside and time will tell if it can regain it or not. When we then look at the weekly price chart we see the added ellipses in 3 locations showing the possibility of what’s called a technical head and shoulders topping pattern. This pattern typically purports a much lower stock price in coming weeks based on years and years of previous data of this pattern.


Analysts Comments

“Intel’s valuation begins to look compelling here: at 13 times forward earnings and a 3 percent dividend yield, a growing Data Center and a soon-to-be-contributing Altera business, we have certainly seen Zacks Rank #3 (Hold) companies in worse shape than Intel. Plus, if we begin to see strong growth numbers from Microsoft’s (MSFT) Windows 10, of which Intel is a major supplier of equipment, there may be even more pop in INTC stock. Intel is down more than 11 percent year over year, including the 2+ percent dip in late trading today. Microsoft’s earnings release comes two weeks from today.” Zacks


And another analyst named Patrick Moorhead, industry analyst with Moor Insights and Strategy, said he remains optimistic for Intel in the coming year. While the PC business may be declining, “I’m not willing to throw in the towel on a 275 million-unit business that’s hundreds of billions of dollars in industry revenues,” he said.-


Intel Business Summary

Intel Corporation designs, manufactures, and sells integrated digital technology platforms worldwide. It operates through PC Client Group, Data Center Group, Internet of Things Group, Mobile and Communications Group, Software and Services, and All Other segments. The company’s platforms are used in various computing applications comprising notebooks, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, transportation systems, and retail devices. It offers microprocessors that processes system data and controls other devices in the system; chipsets, which send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive or solid-state drive, and optical disc drives; system-on-chip products that integrate its central processing units with other system components onto a single chip; and wired network connectivity products. The company also provides mobile communications components, such as baseband processors, radio frequency transceivers, Wi-Fi products, Bluetooth technology, global navigation satellite systems, and power management chips, as well as home gateway and set-top box components. In addition, it offers software products for endpoint security, network and content security, risk and compliance, and consumer and mobile security; NAND flash memory products, which are used in solid-state drives; and custom foundry services, including custom silicon, packaging, and manufacturing test services. The company sells its products primarily to original equipment manufacturers, original design manufacturers, and industrial and communications equipment manufacturers in the computing and communications industries. Intel Corporation has a strategic collaboration with BlueData Software, Inc. Intel Corporation was founded in 1968 and is based in Santa Clara, California. YahooFinance