Stock Update: Intel Corporation (NASDAQ:INTC) – Microsoft, Intel: Pac Crest Sees Biggest-Ever Quarterly Notebook PC Drop

[at Barrons.com] – Pacific Crest’s Brent Bracelin, Michael McConnell, and Brendan Barnicle today warns of a “significant” decline in the outlook for the notebook computer market, enough to reduce the financial outlook for Intel (INTC), Microsoft (MSFT), Advanced Micro Devices (AMD), and HP Inc. (HPQ). This quarter, writes Bracelin, will see the largest-ever decline, quarter to quarter, in shipments of notebook computer “original design manufacturers,” companies such as Compal that move the vast majority of both brand-name and off-brand computers: We now expect unit shipments of 8.3 million in January, down 32% m/m, versus a prior estimate of 9.9 million, or down 19% m/m. Supply-chain conversations indicate that the large cut was caused by excess inventory at PC OEM customers, which has adversely affected shipments at Quanta, Compal and Wistron. Read more on this. Intel Corporation (INTC) , with a current value of $133.22B, began trading this morning at $29.00. A quick look at the market, the company’s stock traded between $28.19 and $29.00 with the price of the stock fluctuating between $24.87 to $35.59 over the last 52 weeks. INTC shares are currently priced at 11.86x this year’s forecasted earnings, which makes them relatively expensive compared to the industry ’s 6.66x forward p/e ratio. And for income investors, the company pays shareholders $1.04 per share annually in dividends, yielding 3.58%. According to a consensus of 30 analysts, the earnings estimate of $0.50 per share would be $0.09 better than the year-ago quarter and a $0.01 sequential increase. What we find to be interesting is that the full-year EPS estimate of $2.43 is a $0.10 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $14.08 Billion. If realized, that would be a 10.17% increase over the year-ago quarter. Recently, Goldman upgraded INTC from Sell to Neutral (Feb 3, 2016). Previously, Macquarie upgraded INTC from Neutral to Outperform. When considering if perhaps the stock is under or overvalued, the average price target is $36.32, which is 25.24% above where the stock opened this morning. See more in (NASDAQ:INTC) Similar Articles: Market Update: Intel Corporation (NASDAQ:INTC) – Intel sees its future in sensors, drones, wearables Company Update: Intel Corporation (NASDAQ:INTC) – 3 reasons why Intel pulled the trigger on a massive $16.7 billion deal, its biggest ever Stock Update: Intel Corporation (NASDAQ:INTC) – Intel: Citi Sees Favorable PC Trends into Q1, Little Past That