The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Intel beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Margins shrank across the board.
Intel logged revenue of $13.46 billion. The 44 analysts polled by S&P Capital IQ expected a top line of $13.20 billion on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $14.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.58 for Q3 were 11% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.3%, 10 basis points worse than the prior-year quarter. Operating margin was 28.5%, 510 basis points worse than the prior-year quarter. Net margin was 22.1%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $13.65 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $53.32 billion. The average EPS estimate is $2.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 9,028 members out of 9,627 rating the stock outperform, and 599 members rating it underperform. Among 1,956 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,848 give Intel a green thumbs-up, and 108 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 $26.06.
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