Intel Hits Estimates, But GAAP Results Lag Last Year's

Intel (Nasdaq: INTC  ) reported earnings on April 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), Intel met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Intel chalked up revenue of $12.58 billion. The 41 analysts polled by S&P Capital IQ wanted to see a top line of $12.60 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.40. The 39 earnings estimates compiled by S&P Capital IQ averaged $0.40 per share. GAAP EPS of $0.40 for Q1 were 25% lower than the prior-year quarter's $0.53 per share.

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 56.2%, 780 basis points worse than the prior-year quarter. Operating margin was 20.0%, 950 basis points worse than the prior-year quarter. Net margin was 16.3%, 490 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $12.90 billion. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $53.58 billion. The average EPS estimate is $1.88.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 9,431 members out of 10,054 rating the stock outperform, and 623 members rating it underperform. Among 2,030 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,932 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 $22.81.

Is Intel the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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 recommends Intel. The Motley Fool owns 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.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2369201, ~/Articles/ArticleHandler.aspx, 10/24/2014 7:19:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 16,677.90 216.58 1.32%
S&P 500 1,950.82 23.71 1.23%
NASD 4,452.79 69.95 1.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/23/2014 3:59 PM
INTC $32.69 Up +0.42 +1.30%
Intel CAPS Rating: ****

Advertisement