Intel Corp Earnings: Profit Rises Behind Revenue Boost

S&P 500 (NYSE:SPY) component Intel Corporation (NASDAQ:INTC) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter.

Results: Net income for the semiconductor company rose to $3.36 billion (64 cents per share) vs. $3.18 billion (56 cents per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year earlier quarter.

Revenue: Rose 21.2% to $13.89 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: INTC reported adjusted net income of 68 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. Analysts were expecting revenue of $13.72 billion.

Quoting Management: “2011 was an exceptional year for Intel,” said Paul Otellini, Intel president and CEO. “With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we’re excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 17.4% and in the second quarter, the figure rose 2.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the third quarter, by 8 cents in the second quarter, and by 10 cents in the first quarter.

Gross margin shrank 0.2 percentage point to 64.5%. The contraction appeared to be driven by increased costs, which rose 21.8% from the year earlier quarter while revenue rose 21.2%.

Revenue has risen the past four quarters. Revenue increased 28.2% to $14.23 billion in the third quarter. The figure rose 21.1% in the second quarter from the year earlier and climbed 24.7% in the first quarter 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 first quarter of the next fiscal year has moved down from 58 cents a share to 51 cents over the last sixty days. For the fiscal year, the average estimate has moved down from $2.45 a share to $2.37 over the last sixty days.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com