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.