S&P 500 (NYSE:SPY) component Intel Corporation (NASDAQ:INTC) reported its results for the third quarter. Intel develops advanced integrated digital technology products for industries such as computing and communications.
Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now
Intel Corporation Earnings Cheat Sheet
Results: Net income for Intel Corporation fell to $2.97 billion (58 cents per share) vs. $3.47 billion (65 cents per share) a year earlier. This is a decline of 14.3% from the year-earlier quarter.
Revenue: Fell 5.5% to $13.46 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Intel Corporation fell short of the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $13.56 billion.
Quoting Management: “Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, Intel president and CEO. “The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we’re pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market.”
A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 28.2%.
The company has now seen its net income fall for three quarters in a row. In the second quarter, net income fell 4.3% from the year earlier, while the figure fell 13.4% in the first quarter.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 3 cents.
The company’s cost of sales fell 5.2% from a year earlier to $4.94 billion. Last quarter, cost of sales was 36.7% of revenue versus 36.6% a year earlier.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 72 cents per share, a drop from 77 cents. For the fiscal year, the average estimate has moved down from $2.50 a share to $2.41 over the last sixty days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: