The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intel beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share expanded.
Margins shrank across the board.
Intel reported revenue of $13.9 billion. The 40 analysts polled by S&P Capital IQ anticipated sales of $13.7 billion. Sales were 21% higher than the prior-year quarter's $11.5 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.68. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.64 per share on the same basis. GAAP EPS of $0.64 for Q4 were 14% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 64.5%, 10 basis points worse than the prior-year quarter. Operating margin was 33.1%, 200 basis points worse than the prior-year quarter. Net margin was 24.2%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.8 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $55.0 billion. The average EPS estimate is $2.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 8,582 members out of 9,161 rating the stock outperform, and 581 members rating it underperform. Among 2,113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,027 give Intel a green thumbs-up, and 86 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intel is outperform, with an average price target of $26.23.
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