Intel Corp. Earnings Cheat Sheet: Revenue Up, Profit Up

S&P 500 (NYSE:SPY) component Intel Corporation (NASDAQ:INTC) reported net income above Wall Street’s expectations for the third quarter. Intel develops advanced integrated digital technology products for industries such as computing and communications.

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Intel Earnings Cheat Sheet for the Third Quarter

Results: Net income for the semiconductor company rose to $3.47 billion (65 cents per share) vs. $2.96 billion (52 cents per share) in the same quarter a year earlier. This marks a rise of 17.4% from the year earlier quarter.

Revenue: Rose 28.2% to $14.23 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: INTC reported adjusted net income of 69 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. It beat the average revenue estimate of $13.9 billion.

Quoting Management: “Intel delivered record-setting results again in Q3, surpassing $14 billion in revenue for the first time, driven largely by double-digit unit growth in notebook PCs,” said Paul Otellini, Intel president and CEO. “We also saw continued strength in the data center fueled by the ongoing growth of mobile and cloud computing.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 2.3% and in the first quarter, the figure rose 29.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 10 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 2.6 percentage points to 63.4%. The contraction appeared to be driven by increased costs, which rose 37.9% from the year earlier quarter while revenue rose 28.2%.

Revenue has risen the past four quarters. Revenue increased 21.1% to $13.03 billion in the second quarter. The figure rose 24.7% in the first quarter from the year earlier and climbed 8.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 66 cents a share to 64 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $2.29 per to share to $2.35.

Competitors to Watch: Advanced Micro Devices, Inc. (NYSE:AMD), Texas Instruments Inc. (NYSE:TXN), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), Oracle Corporation (NASDAQ:ORCL), Micron Technology, Inc. (NASDAQ:MU), ARM Holdings plc (NASDAQ:ARMH), and QUALCOMM, Inc. (NASDAQ:QCOM).

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(Source: Xignite Financials)

 

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