Earnings Cheat Sheet: Intel Posts All-time Record Revenue and 59% Earnings Increase

Based on revenue, Intel Corporation (INTC) is the world largest semiconductor chip maker. They manufacture microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components. The sale of microprocessors and chipsets developed by their recently reorganized nine operating segments provide the substantial majority of their revenue.

Intel sets the stage for semiconductors with record breaking earnings and revenues during their third quarter.

Earnings: Earnings increased 59% to $2.95 billion ($0.52 cents a share vs $0.50 concensus) from $1.85 billion ($0.34 cents a share) for the same quarter the previous year.

Revenues: Revenue increased 18% to $11.1 billion from $9.4 billion year-over-year.

Notable Stats: Gross margin was at 66%, in line with the company’s revised expectation but expects Q4 to increase to 67%.

PC Client Group revenue was up 3% from record mobile microprocessor revenue while Data Center Group revenue was also up 3% from record server microprocessor revenue.

Key CEO Quote: “Intel’s third-quarter results set all-time records for revenue and operating income,” said Paul Otellini, Intel president and CEO.

Key Competitors to Watch: Advanced Micro Devices, Inc (AMD) report earnings 10/14/10 after the bell and Texas Instruments Inc. (TXN).

Technicals: Intel is currently trading above its 50 Day Moving Average but below its 200 DMA. Shares are also near the top of a downtrending channel on the daily timeframe.

A confirmed break above could be the beginning of a new trend while selling may be indicative of channel continuation. The positive news out of Intel may trigger a release of downside pressure on Semiconductor HOLDRS (SMH), possibly springing it along with the rest of the components forward. SMH is currently trading merrily above its 50 DMA and 200 DMA simple moving averages.

Disclosure: No positions in INTC or SMH