Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

How the Internet of Things Is Helping Intel Grow

The week before Halloween also happens to be one of the most crowded and important weeks of the third-quarter earnings season this year, as 180 S&P 500 companies report their Q3 metrics. One company that has potential to stand out is Intel INTC.

Intel is set to report its Q3 earnings on Thursday. The company is currently a Zacks Rank #1 (Strong Buy) and has met or surpassed earnings estimates in each of the trailing 14 quarters. Yet, other, up-and-coming semiconductor industry giants—including Nvidia NVDA and AMD AMD—have encroached on Intel’s market share recently.

This has led shares of Intel to gain just 12.57% this year, which is close to the S&P 500 average but below the “Semiconductor – General” industry’s gain of over 60%.

We expect Intel to post earnings of 80 cents per share and revenues of $15.71 billion in its third-quarter, based on our latest consensus estimates. These figures might sound solid on their face, but if these projections prove true, they would represent year-over-year growth rates of 0.4% and -0.42%, respectively.

Nevertheless, our full-year projections paint a much more positive picture, with the company expected to post earnings growth of 10.7% and revenue growth of 3.3%.

Of course, revenue and earnings aren’t all that investors care about, and luckily for Intel, many investors will also pay close attention to future-focused projects, such as its Internet of Things segment, to help determine where the company stands.

Thankfully, we can check our exclusive non-financial metrics estimates file to help determine how some of Intel’s specific divisions might perform come Thursday.

These important stock drivers are from our exclusive non-financial metrics consensus estimate file. These estimates are updated daily and are based on the independent research of expert stock analysts. Learn more here>>>

Intel has turned some of its focus towards the Internet of Things. This strategic move is aimed to help improve both the company’s top and bottom line, especially as the world of internet-connected products, from cars to refrigerators, proliferates.

The semiconductor maker designs an assortment of IoT products used in the retail and transportation industries, as well as in the development of connected smart cities. Based on our latest consensus estimates, Intel’s IoT revenues are set to jump 12% to reach $772 million this quarter.

Growth in Intel’s IoT sector might make investors who are worried about Intel’s possible overall Q3 revenue decline a bit less apprehensive.

For more stock-moving estimates ahead of Intel’s Q3 report, check out our full guide: 3 Key Estimates for Intel's Q3 Earnings Report

And make sure to check back here for our full analysis of Intel’s actual results later this week!

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Intel Corporation (INTC): Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
 
NVIDIA Corporation (NVDA): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research