Will Investors Heed Peer Warnings on Intel (INTC), Microsoft (MSFT) into Quarterly Results?

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Intel and Microsoft. Microsoft and Intel. Wintel. Introsoft. Any way you put the two names together, you still have titans of the PC industry.

The only problem is that the world's largest emerging market, China, is slowing. Not only that, but Europe is still on the outs and a solid recovery time line is far from being hashed out.

One Baird analyst thinks that investors might just want to give up all hope on a PC rebound for 2012.

Baird's estimate comes following news out of Intel peer Advanced Micro Devices ( AMD ) last week, which cut second-quarter 2012 expectations on weakness in China and Europe. Analysts don't attribute the guidance simply on market share loss to NVIDIA (Nasdaq: NVDA) and Intel, either.

Another bit of data from research firm Gartner recently showed the global market for PC shipments slowing 0.1 percent to 87.5 million in the second quarter.

Intel (Nasdaq: INTC) will release its second-quarter earnings report tomorrow. With its last quarterly report , the chip maker said it expected sales of $13.6 billion +/- $500 million and EPS of 52 cents. The Street is taking a cautious tone, with analyst estimates at $13.57 billion in sales and EPS of 52 cents. (Notably, traders are painting a rosier picture, with Estimize consensus expectations currently putting Intel with sales at $13.68 billion and EPS of 55 cents.) For more historical EPS data for Intel, click here .

For Microsoft (Nasdaq: MSFT), the software giant is a little more insulated due to stronger sales in other segments like Gaming and Software. The Redmond, WA-based company announced just a few weeks ago it plans to enter the PC market via its Surface tablets, but whether or not those will take market share is a tricky question; adaption of Windows 8 plus pricing will play key parts in this effort.

Microsoft is expected to release its fourth-quarter results on Thursday. The Street is currently modeling EPS of 62 cents on revenue of $18.1 billion. Estimize is a little more bullish here as well, seeing sales of $18.47 billion and EPS of 64 cents. For more on Microsoft, click here .

Intel and Microsoft are mixed in mid-day trading Monday, with Intel in the red while Microsoft having just burst into positive territory.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Earnings , Stocks

Referenced Stocks: AMD , INTC , MSFT , NVDA

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