Intel Corporation Earnings: Higher-Than-Expected Net Income

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

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Intel Earnings Cheat Sheet for the Second Quarter

Results: Net income for Intel Corporation rose to $2.95 billion (54 cents per share) vs. $2.89 billion (51 cents per share) in the same quarter a year earlier. This marks a rise of 2.3% from the year earlier quarter.

Revenue: Rose 21.1% to $13.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: INTC reported adjusted net income of 59 cents per share. By that measure, the company beat the mean estimate of 51 cents per share. Analysts were expecting revenue of $12.82 billion.

Quoting Management: “We achieved a significant new milestone in the second quarter, surpassing $13.0 billion in revenue for the first time,” said Paul Otellini, Intel president and CEO. “Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth, and the rapid rise of computing in emerging markets drove record results. Intel’s 23 percent revenue growth in the first half and our increasing confidence in the second half of 2011 position us to grow annual revenue in the mid-20 percent range.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Gross margin shrank 6.6 percentage points to 60.6%. The contraction appeared to be driven by increased costs, which rose 45.3% from the year earlier quarter while revenue rose 21.1%.

Revenue has risen the past four quarters. Revenue increased 24.7% to $12.85 billion in the first quarter. The figure rose 8.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 18.2% in the third quarter of the last fiscal year from the year-ago quarter.

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)