Intel Earnings: Shares Sink Following Report

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.

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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.”

Key Stats:

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.

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

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