- Banc of America notes their industry/channel checks suggest that Intel's (NASDAQ:INTC) Dec qtr revs finished at $9.6b (+10% Q/Q) - or near the high end of guidance ($9.1-9.7b).
Specifically, checks suggest that Intel benefited from a stronger uptake of Core 2 Duo mobile
processors (Merom), as well as stronger momentum in servers (driven in part by share gains versus AMD). Given the strength in notebooks & servers they expect Q4 gross margin to benefit from improved mix. Consequently, they expect Q4 GAAP gross margin to clock in at ~52% vs. the mid-pt of guidance of 50%. Finally, from a geographic standpoint, most of the strength was witnessed outside North America, with Europe & APAC exhibiting relative outperformance.
The firm is raising their above-consensus 4Q rev. est. to $9.6b, and tweaking GAAP EPS est. higher to $0.27 (Street: $0.25). Firm's new CY07 GAAP EPS est. of $1.27, up from $1.25, remains comfortably above consensus ($1.11). They note that this marks their 2nd upward rev. to Intel's est. in less than a month.
Maintains Buy and Top Pick status. Tgt $28.
Notablecalls: Most certainly good to know category. I would not be surprised to see some buy interest in INTC early on as it looks like INTC is regaining some ground vs AMD.
Specifically, checks suggest that Intel benefited from a stronger uptake of Core 2 Duo mobile
processors (Merom), as well as stronger momentum in servers (driven in part by share gains versus AMD). Given the strength in notebooks & servers they expect Q4 gross margin to benefit from improved mix. Consequently, they expect Q4 GAAP gross margin to clock in at ~52% vs. the mid-pt of guidance of 50%. Finally, from a geographic standpoint, most of the strength was witnessed outside North America, with Europe & APAC exhibiting relative outperformance.
The firm is raising their above-consensus 4Q rev. est. to $9.6b, and tweaking GAAP EPS est. higher to $0.27 (Street: $0.25). Firm's new CY07 GAAP EPS est. of $1.27, up from $1.25, remains comfortably above consensus ($1.11). They note that this marks their 2nd upward rev. to Intel's est. in less than a month.
Maintains Buy and Top Pick status. Tgt $28.
Notablecalls: Most certainly good to know category. I would not be surprised to see some buy interest in INTC early on as it looks like INTC is regaining some ground vs AMD.
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