Tomorrow, semiconductor chip makers Intel Corp. (NASDAQ: INTC) and Altera Corp. (NYSE: ALTR) are both expected to report profit growth in the third quarter.
Intel is expected by analysts surveyed by Thomson Financial to report earnings of 34 cents per share, 8.8% higher than the same period of last year, on revenue of $10.3 billion. The company has missed estimates in two of the past three quarters, but beat by 10.2% in the second quarter.
Based in Santa Clara, Calif., Intel is the world's largest chip maker, and generates half its revenues from Asia/Pacific. In the past year, the company's revenues were $38.3 billion and its net income totaled $6.9 billion. Its long-term EPS growth forecast is 11.9%, which is less than the S&P, as well as that of rival Advanced Micro Devices Inc. (NYSE: AMD). The consensus recommendation of analysts has recently shifted from hold to buy Intel.
The share price has fallen 17.7% in the past three months, and closed Monday at $16.99, up 11.9% in the day's big rally.
Altera is expected to report net income of 30 cents per share, up 33.3% from the year-ago period, on revenue of $355.1 million. The company has provided positive surprises in the past five quarters -- by 19.4% in the previous quarter.
San Jose-based Altera is a top maker of high-density programmable logic devices, an alternative to custom-designed chips. About three-quarters of the company's revenues come from outside North America. In the past year, Altera's revenues were $1.3 billion and its net income totaled $290.0 million. The company's long-range EPS growth forecast is 16.6%, better than the S&P 500. The consensus recommendation of analysts remains to buy Altera.
The share price is down 8.8% in the past three months, and closed Monday at $17.50, up 11.8%.
For more news about semiconductors that could influence the results, see BloggingStocks' Intel coverage.
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Reader Comments (Page 1 of 1)
10-14-2008 @ 5:41PM
Steve said...
www.winningstocktrades.com
Considering what the media is feeding the public with their doom and gloom headlines. The earning coming out are pretty good. It only makes sense that outlooks will be lower. It is a wait and see game for now.