Replies to post #41365 on Intel Corp (INTC)

[wbmw]

Re: What do you expect the 07 and 08 eps to be ?

For 2007:

Revenue: $37B (guess)
Margin: 51% = $18.87B (known)
R&D + MG&A = $5.5B + $5.2B = $10.35 (known)
Operating Income = $18.87 - $10.35 = ~$8.5B
Gains from investments/interest = ~$0.5B (SWAG)
Income before Taxes = ~$9.0B
Tax Rate = 31% = ~$2.95B (known)
Net Income = ~$6B
Shares = ~5700M (guess)
EPS = $1.05 (give or take $0.10)

For 2008, no clue, but I would hope to see it at least 15% greater than 2007.

Re: Also, do you think Intel will get lot higher PEs if AMD continues to suffer financially ?

In a way, yes. Investors need to know that Intel's earnings aren't under pressure from a scrappy competitor who is willing to sacrifice margins for market share.