Analysts at Deutsche Bank on Tuesday offered some tepid
commentary for processor maker Intel Corporation (
) and wireless chipmaker Broadcom Corporation (
The firm said it expects INTC to report second quarter profits
of 52 cents per share on $13.617 billion in revenue. For the third
quarter, Deutsche Bank cut its profit estimate from 67 to 65 cents
and its revenue outlook from $14.951 billion to $14.71 billion,
citing ongoing macroeconomic weakness.
The analyst forecast BRCM to post earnings of 68 cents per share
for the second quarter, on $1.953 billion in revenue. For the third
quarter, Deutsche Bank lowered its estimate from 80 cents to 78
cents and revenue outlook from $2.121 billion to $2.086
The firm commented, "While we believe semi co's will report 2Q12
results that are generally in-line with DB ests, we are trimming
our 3Q12 ests for the majority of co's under coverage to reflect
the weaker macro environment. The muted slope of this recovery will
demand investor patience, but we maintain our Overweight stance on
the semi sector as we see q/q growth continuing in 2H12 and view
both sector-wide inventory and valuation as attractive."
Intel shares fell 32 cents, or -1.2%, in premarket trading
Tuesday, while Broadcom shares posted small gains.
The Bottom Line
Shares of Intel (
) have a 3.44% dividend yield, based on last night's closing stock
price of $26.17. The stock has technical support in the $24 price
area. If the shares can firm up, we see overhead resistance around
the $28-$29 price levels. Shares of Broadcom (
) have a 1.26% dividend yield, based on last night's closing stock
price of $31.64. The stock has technical support in the $28-$30
price area. If the shares can firm up, we see overhead resistance
around the $34-$36 price levels.
Intel Corporation (
) and Broadcom Corporation (
) are both currently rated "Neutral" by Dividend.com.
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