Intel Earnings: Here’s Why Investors are Riding a Rollercoaster

Intel Corporation (NASDAQ:INTC) generated a profit and beat Wall Street’s expectation. Despite exceeding analyst estimate, Intel delivered a decline in top-line and bottom-line year-over-year numbers. Shares are down 2.43%.

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Intel Corporation Earnings Cheat Sheet

Results: Net income decreased -22.62% to $2.6 billion (48 cents per diluted share) in the quarter versus a net gain of $3.36 billion in the year-earlier quarter.

Revenue: Decreased 2.79% to $13.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Intel Corporation reported adjusted net income of 48 cents per share. By that measure, the company beat the mean analyst estimate of $0.45. Intel was in-line with the average revenue estimate of $13.53 billion.

Quoting Management: “The fourth quarter played out largely as expected as we continued to execute through a challenging environment,” said Paul Otellini, Intel president and CEO…

…We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data center. As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing.”

Key Stats:

Revenue increased 0.32% from $13.46 billion in the previous quarter. Net income decreased 12.52% from $2.97 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.41 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $2.13 to a profit of $2.1 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)