Intel Corp (INTC)

[wbmw]

Intel Likely To See Additional Downside To Estimates

http://www.forbes.com/2006/01/18/intel-amd-earnings0118markets01.html?partner=yahootix

The analyst reduced his calendar 2006 earnings-per-share estimate to $1.37 on revenue of $39.5 billion from $1.59 on revenue of $42.8 billion. He introduced calendar 2007 estimates of $1.52 per share on revenue of $43.0 billion.

From what I can see, the analyst here, Christopher Danley, has no basis for his new ratings, other than he just thinks so. IMO, I think Intel is already being very conservative over 2006, and if the analysts are now trying to undershoot the conservative estimates, it means even greater possible upside.

Obviously, Intel is not out of the woods yet, especially with regards to competition, but I don't believe the market will stagnate as much as the analysts are predicting. I mean, come on... he's calling a down year in terms of EPS for 2006 and a flat year in terms of revenue for 2007. He's making it pretty easy for Intel to beat this.