The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Intel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Intel booked revenue of $13.48 billion. The 39 analysts polled by S&P Capital IQ expected to see a top line of $13.53 billion on the same basis. GAAP reported sales were 3.0% lower than the prior-year quarter's $13.89 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 $0.51. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.48 for Q4 were 25% lower than the prior-year quarter's $0.64 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 58.0%, 650 basis points worse than the prior-year quarter. Operating margin was 23.4%, 970 basis points worse than the prior-year quarter. Net margin was 18.3%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.92 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $54.38 billion. The average EPS estimate is $2.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 9,241 members out of 9,857 rating the stock outperform, and 616 members rating it underperform. Among 2,120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,022 give Intel a green thumbs-up, and 98 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intel is hold, with an average price target of $23.11.
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