E How Will Intel Traders React To Earnings?

Intel (INTC) is expected to report earnings on Thursday, January 26th, after market close. The whisper number is $0.75, in-line with the analysts' estimate and showing neutral confidence from the WhisperNumber community. A year ago the company reported earnings of $0.74. Intel has a 62% positive surprise history (having topped the whisper in 43 of the 69 earnings reports for which we have data).

Earnings history:

  •  Beat whisper: 43 qtrs
  •  Met whisper: 2 qtrs
  •  Missed whisper: 24 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock's price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

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The strongest price movement of -0.8% comes within twenty trading days when the company reports earnings that beat the whisper number, and +3.9% within thirty trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is 'opposite' (beat the whisper number and see weakness, miss and see strength) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

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The company has reported earnings ahead of the whisper number in three of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings eight cents ahead of the whisper number. Following that report the stock realized a 2.0% gain in five trading days. Last quarter the company reported earnings three cents short of the whisper number. Following that report the stock realized a 5.3% loss in thirty trading days. Overall historical data indicates the company to be (on average within thirty trading days) an 'opposite' price reactor when the company reports earnings.

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