Assignment Description:
The task is to analyze the impact of Intel Corporation’s earnings warning issued on September 21, 2000, on its stock valuation. The analysis involves building pro forma financial statements for Intel based on Wall Street’s expectations before and after the earnings warning, using the provided data and eVal software. The primary objective is to evaluate whether the 22% drop in Intel’s stock price following the earnings announcement was justified by the changes in valuation fundamentals or if other factors contributed to the market reaction.
References and Data Sources:
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Intel’s Earnings Warning Press Release (Attached as Exhibit 1 in the provided case file): This press release provides details on Intel’s third-quarter revenue expectations and serves as a key input for the analysis.
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eVal Software Data: Use the data provided in the attached Excel sheet (eval6_Intel.xlsx) for importing into the eVal software to facilitate the valuation analysis.
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Financial Statements and Market Data: Data regarding Intel’s stock price movement before and after the earnings warning, and other historical financial data provided in the PDF case file.
Links to Articles:
If you have access to academic databases or market news articles, the following sources might provide additional background:
- Bloomberg or Reuters for historical context on Intel’s stock performance during the time of the earnings warning.
- Academic databases like JSTOR, ProQuest, or Google Scholar for articles on market reactions to earnings announcements.
- Intel Corporation’s official website for press releases and investor relations documents from 2000.