One of my favorite seasons of the year is upon us; earnings season. Next week, Intel is expected to release its earnings report for the quarter. An event that tends to cause either massive gains or massive losses for any stock on the market. So, the big question for Intel investors and traders is, “How will the company do on earnings and how will the market react?” Today, we'll take a look at what analysts are expecting to see, talk about how investors seem to see the stock, and discuss what we're likely to see in the market and how to capitalize from the trends. So, let's get right to it.
What Analysts Are Expecting To See From Intel's Earnings
Earnings this year are expected to be slightly lower than they were last year. According to 247 Wall Street, Thomson Reuters has earnings estimates at $0.51 per share; slightly lower than the $0.55 per share we saw in the same quarter last year. They are also expecting to see a decline in top-line revenue; coming in at $13.11 billion in comparison to last year's $13.83 billion. When looking at overall analyst opinions, these numbers fall right in line with what the masses are expecting to see; with high estimates at $0.55 per share and low estimates at $0.42 per share.
How Investors Seem To See The Stock
If you look at the past five days for Intel's stock, it's easy to see that it has been having a rough time. Much of the downward movement we've seen in the stock can be attributed to economic worries surrounding Greece and the market crash in China. However, the momentum seemed to change on Friday. When analysts and news outlets started to spark conversation about Intel's earnings report, we saw a bit of a reversal in the downward momentum on Friday; leading the stock to modest gains. Based on the reason for the reversal, I'm going to go out on a limb here and say that investors are expecting to see positive news from the company with regard to earnings.
What I Think We're Going To See From Intel's Earnings Report
Personally, I'm expecting to see positive news from the company's earnings. First off, I think that it's important to pay attention to the company's history with regard to earnings. While analysts will always give their opinions, over the past 8 quarters, those opinions have been incorrect 6 times. 5 of the times analysts were incorrect, the company beat earnings expectations in a big way; and the one time the company's earnings came in lower than expected, it wasn't by much. That happened in January of 2014 when Intel reported earnings that were $0.01 lower than expected. Based on this history, I'd have to imagine that chances of the company producing higher than expected earnings are great!
How The Market Is Likely To React And How To Profit From The Trends
It is common knowledge that earnings tend to cause price movements in the market; and that when earnings are positive, so too is the resulting price movement. With that said, I am expecting Intel to beat earnings on July 15th, and I'm expecting that to turn into an overwhelmingly positive day in the market. With that said, binary options traders have a great opportunity. On July 15th, when earnings are released, we are likely to see gains. So, track the event and watch the stock chart. When Intel starts the uptrend, purchase calls as they are likely to prove to be incredibly profitable options.
What Do You Think?
What are you expecting to see from Intel's earnings report and why? Let us know in the comments below!