INTC: Earnings Expected to Beat the Street 1.14.2013

The company has a solid dividend yield of 4.10% and is currently trading around $22.00 per share. INTC is best known for their processors, or CPUs, which account for roughly 65% of their sales. Some investors may be growing skeptical of INTC, due to the fact that a majority of the company’s profits are obtained through PC sales, which were down 6% in 2012. If INTC wants to maintain the confidence of its shareholders it will have to address additional strategies for growth. PC companies are now shifting their focus from high volume sales to higher margin sales, basically selling higher end, more expensive computers. This is due to sales being stolen by tablets and smartphones, which essentially offer the same capabilities. INTC is planning to establish a partnership with Lenovo Group Ltd. Lenovo is attempting to enter the smartphone market and become the first company to use Intel’s processor chip in its handset devices. Lenovo is the second largest seller of smartphones in China, right behind Samsung Electronics Co. The future growth of INTC is likely to be driven by providing processor chips to companies that sell handset devices such as smartphones or tablets. Expect INTC to meet or exceed analysts’ expectations as it has done so successfully in the past.

Author: Tyler Sciortino

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