Intel Beats Analyst Estimates on EPS

Intel (Nasdaq: INTC  ) reported earnings on July 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Intel met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't change.

Gross margins grew, operating margins dropped, and net margins shrank.

Revenue details
Intel recorded revenue of $13.50 billion. The 42 analysts polled by S&P Capital IQ looked for revenue of $13.55 billion on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $13.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.57. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.55 per share. GAAP EPS of $0.54 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.4%, 280 basis points better than the prior-year quarter. Operating margin was 28.4%, 180 basis points worse than the prior-year quarter. Net margin was 20.9%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $14.43 billion. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $56.43 billion. The average EPS estimate is $2.53.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 8,870 members out of 9,463 rating the stock outperform, and 593 members rating it underperform. Among 2,000 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,906 give Intel a green thumbs-up, and 94 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 $29.47.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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