INTC Stock – Buy Intel’s Modest Earnings Surprise

Advertisement

Last week, Intel Corporation (INTC) reported record fourth-quarter results.

Intel Corp. (NASDAQ:INTC)Now that we’ve had a few days to dig through all the numbers, is now a good time to buy into Intel stock?

Intel – Company Overview

With a company history going back to 1968 (practically the dawn of the personal computer), Intel is considered an institution in the microchip business.

From microprocessors to motherboards to flash memory, Intel has a hand in many of the components found in today’s PCs. But while Intel built its empire on the PC boom, much of the future depends on its mobile and tablet technologies.

And Intel has made every effort to set the pace for the rest of the industry. Last year, Intel brought in $52.71 billion in revenue and currently pays out a 2.48% dividend yield.

Intel – Earnings Rundown

Intel reported its fourth-quarter just before the opening bell Friday. For the fourth quarter, INTC posted net income of $3.7 billion, or 74 cents per share, on $14.72 billion in revenue. Compared with Q4 2013 this represented 39% bottom-line growth and 6.4% top-line growth.

Analysts expected earnings of 66 cents per share on $14.70 billion in sales. So, Intel posted a 12.1% earnings surprise and a modest sales surprise.

Looking ahead to the first quarter, INTC expects $13.7 billion in revenue, plus or minus $500 million. This is on the lower end of the Street view of $13.77 billion in forecasted revenue.

Intel – Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. INTC stock has been in “buy” territory for the past several months, which is largely due to INTC stock’s strong buying pressure. INTC stock earns an A for its Quantitative Grade.

In addition, Intel’s fundamentals are also strong. Bright spots include Intel’s return on equity (A), analyst earnings revisions (B), operating margin growth (B), earnings growth (B) and earnings momentum (B).

Intel could use some improvement in cash flow, earnings surprises and sales growth, which all earn lackluster C-grades. Overall, INTC earns a B for its total Fundamental Grade.

As of this posting, I consider INTC stock an A-rated “strong buy.”

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2015/01/intc-stock-buy-intel-modest-earnings-surprise/.

©2024 InvestorPlace Media, LLC