Intel Earnings: Here’s Why the Stock is Down Now

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 2.36%.

Intel Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 27.78% to $0.39 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Decreased 5.11% to $12.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Intel Corporation reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.4. It missed the average revenue estimate of $12.9 billion.

Quoting Management: “In the second quarter, we delivered on our quarterly outlook and made several key product announcements,” said Intel CEO Brian Krzanich. “In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company.”
“Looking ahead, the market will continue buying a wide range of computing products,” he added. “Intel Atom and Core processors and increased SOC integration will be Intel’s future. We will leave no computing opportunity untapped. To embrace these opportunities, I’ve made it Intel’s highest priority to create the best products for the fast growing ultra-mobile market segment.”

Key Stats (on next page)…

Revenue increased 1.84% from $12.58 billion in the previous quarter. EPS decreased 2.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.5 and has not changed. For the current year, the average estimate has moved down from a profit of $1.88 to a profit of $1.87 over the last ninety days.

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