Tonight is the night for a fourth-quarter 2007 report from chip giant Intel
What Fools say:
Here's how Intel's CAPS scoring rates against some of its peers and competitors:
Market Cap (millions) |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Intel |
$128,576 |
20.7 |
|
NVIDIA |
$16,030 |
25.2 |
|
Broadcom |
$12,970 |
83.0 |
|
Advanced Micro Devices |
$3,550 |
N/A |
|
Atheros Communications |
$1,570 |
63.7 |
CAPS players love Intel and many other tech stocks. One player says, "If you thought the 1990s were great for technology, you haven't seen anything yet. The rest of the world is becoming wealthy, and computers are the appliance to own." So why not invest in the chips that will power those favorite appliances?
The bears are few and far between, and they talk mostly about falling markets -- computer hardware, and stocks in general -- that will take this company along for a depressing ride.
What management says:
Intel added a new seat on its board last November that includes Ms. Carol Bartz, executive chairwoman and ex-CEO of digital design specialist Autodesk. She also serves on the board of Cisco Systems
Intriguing.
What management does:
The long-running price war with AMD appears to be over, or at least standing down in a ceasefire. I'd expect the gross margins to climb again, marking last summer as the definitive bottom of this trough.
Of course, the cost savings kicked in a bit before that, and with the 45-nm production lines in working order, there's little need for massive capital expenditures these days.
7/1/2006 |
9/30/2006 |
12/30/2006 |
3/31/2007 |
6/30/2007 |
9/29/2007 |
|
---|---|---|---|---|---|---|
Gross |
57.9% |
54.9% |
51.5% |
50.2% |
49% |
49.8% |
Operating |
25.2% |
21.1% |
17.5% |
17.7% |
18.3% |
20.1% |
Net |
18% |
16.7% |
14.3% |
15.1% |
15.9% |
16.6% |
FCF/Revenue |
15% |
11.4% |
13.7% |
13.3% |
16.8% |
19.4% |
Y-O-Y Growth |
7/1/2006 |
9/30/2006 |
12/30/2006 |
3/31/2007 |
6/30/2007 |
9/29/2007 |
---|---|---|---|---|---|---|
Revenue |
1% |
(6.1%) |
(8.9%) |
(7.9%) |
(3.1%) |
4% |
Earnings |
(18.9%) |
(28.1%) |
(41.8%) |
(32.1%) |
(14.6%) |
3.5% |
One Fool says:
You might have noticed that Intel's share price is down some 15% over the last month, even after Monday's brave 5% ascent. That owes to a mixture of recession fears and a couple of negative analyst notes. Dropping out of the One Laptop Per Child program also didn't help the company's image much, though it may have bolstered profit margins a tiny bit.
If IBM's