Intel Earnings: Investors Lack Direction

S&P 500 (NYSE:SPY) component Intel Corporation (NASDAQ:INTC) reported its results for the second 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 $2.8 billion (54 cents per share) vs. $2.95 billion (54 cents per share) a year earlier. This is a decline of 5.2% from the year-earlier quarter.

Revenue: Rose 3.6% to $13.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Intel Corporation beat the mean analyst estimate of 52 cents per share. Analysts were expecting revenue of $13.56 billion.

Quoting Management: “The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones,” said Paul Otellini, Intel president and CEO. “As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we’re making in our product and manufacturing areas, we are well positioned for this year and beyond.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 0.5% to $12.91 billion in the first quarter. The figure rose 21.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 28.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen in each of the last two quarters. In the first quarter, net income fell 13.4% from the year-earlier quarter.

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 third quarter is 65 cents per share, a drop from 67 cents. In the past month, the average estimate for the fiscal year has fallen from $2.50 per share to $2.45.

Competitors to Watch: Advanced Micro Devices, Inc., Texas Instruments Inc., Intl. Business Machines Corp., Microsoft Corporation, Apple Inc., NVIDIA Corporation, Oracle Corporation, Micron Technology, Inc., ARM Holdings plc, and QUALCOMM, Inc.

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

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