Intel Earnings: Here’s Why Shares are Wobbling

Intel Corporation (NASDAQ:INTC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.12%.

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Intel Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 24.53% to $0.4 in the quarter versus EPS of $0.53 in the year-earlier quarter.

Revenue: Decreased 2.53% to $12.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Intel Corporation reported adjusted EPS income of $0.4 per share. By that measure, the company missed the mean analyst estimate of $0.41. It missed the average revenue estimate of $12.61 billion.

Quoting Management: “Amidst market softness, Intel performed well in the first quarter and I’m excited about what lies ahead for the company,” said Paul Otellini, Intel president and CEO. “We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace.”

Key Stats (on next page)…

Revenue decreased 6.66% from $13.48 billion in the previous quarter. EPS decreased 16.67% from $0.48 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 $0.42 to a profit $0.4. For the current year, the average estimate has moved down from a profit of $1.94 to a profit of $1.9 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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