by Ian Harvey
October 28, 2017
Intel Corporation (NASDAQ:INTC)
Here is an overview of Intel Corporation (NASDAQ:INTC)’s winning options call trade after reporting earnings. This options trade was recommended to “Stock Options Made Easy” Members on Wednesday, October 25, 2017 in ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, October 23, 2017”; producing more than expected profits within a couple of days of executing the trade!
Intel Corporation (NASDAQ:INTC), a designer and manufacturer of digital technology platforms, a large-cap value stock and member of the Dow Jones Industrial Average, is set to report its Q3 earnings on Thursday. Intel is expected to post earnings of 80 cents per share whereas the Earnings Whisper number is $0.82 per share, and revenues of $15.71 billion in its third-quarter, based on the latest consensus estimates. The company has met or surpassed earnings estimates in each of the trailing 14 quarters. Overall earnings estimates have been revised higher since the company's last earnings release.
And though shares of Intel have gained only 12.57% this year, which is less than the S&P 500 and well below the industry's average gain, the stock does currently rest firmly near its 52-week high.
Fiscal 3Q is a seasonally strong quarter for Intel because back-to-school season drives PC sales, and new flagship phones drive mobile modem sales. Intel expects its fiscal 3Q17 revenue to grow 6% sequentially to $15.7 billion.
These lofty heights can be attributed to Intel's 15% climb over the last 12-weeks, including a nearly 10% gain in the last month alone.
Yet, for the full-year, Intel is expected to post earnings growth of 10.7% and revenue growth of 3.3%.
** OPTION TRADE: Buy the INTC NOV 17 2017 41.000 CALL at approximately $0.85.
Intel Corp reported third-quarter 2017 non-GAAP earnings of $1.01 per share, which beat the Consensus Estimate by 21 cents. The figure surged 26.3% from the year-ago quarter and 40.3% sequentially.
The strong earnings growth was driven by better-than-expected top-line performance and operating margin expansion. Moreover, Intel Channel Alliance Program (ICAP) contributed 13 cents to quarterly earnings.
Revenues totaled$16.15 billion, up 2.4% year over year and 9.4% quarter over quarter. The figure beat the Consensus Estimate of $15.71 billion. After adjusting for the McAfee (formerly Intel Security Group) transaction, revenues grew 6%.
Also, Loop Capital analyst Betsy Van Hees commended the chip maker for “firing on all cylinders.”
With even more confidence now on the tech player’s opportunity, the analyst maintains a Buy rating on INTC stock while hiking the price target from $45 to $49, which represents a close to 13% increase from where the stock is currently trading.
“The EPS beat was driven by solid platform execution, strong growth from adjacent products and businesses, lower spending, and monetizing some of the ICAP (Intel Channel Alliance Program) portfolio positions that resulted in a gain of $0.13,” writes the analyst, who likewise highlights Intel’s persistent attention to keeping an eye on spending and reigning in expenses. Pro forma operating margin (OM) rose from 28.2% in the second quarter to 34.4% in the third quarter, with operating expenses (OpEx) taking a step down from $5.13 billion in the second quarter to $4.78 billion, “well below” Intel’s expectations for $5.1 billion.
Shares of Intel soared on Friday, rising 8.3% as of 2:40 p.m. Eastern Time, and reaching prices not seen since the dot-com bubble. A rock-solid earnings report provided fuel for the fire.
Intel closed trading on Thursday at $41.35.
By Friday close, the stock price was $44.40, up $3.05, or 7.38%.
So, for those members of Stock Options Made Easy; a nice tidy potential profit of 359% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……