Intel Sort Of Improves: Fool by Numbers

On Tuesday, Intel (Nasdaq: INTC  ) released Q3 2006 earnings for the period ending Sept. 30.

  • The company earned $0.27 per share after accounting for share-based compensation, which easily beat the Street's $0.18 estimate.

  • What's more, the chip maker topped analyst projections on the top line by more than $100 million.

  • But not all the news was good; inventory continued a steep climb upward, increasing 59% year over year. That's hardly encouraging news when sales were down 12% over the same period.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$8,620

$8,739

$9,960

(12.3%)

Net Profit

--

$1,301

$1,995

(34.8%)

EPS

$0.18

$0.22

$0.32

(31.3%)

Diluted Shares

--

5,832

6,144

(5.1%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

49.14%

59.72%

(10.58)

Operating Margin

15.72%

31.12%

(15.40)

Net Margin

14.89%

20.03%

(5.14)

* Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$7,123

$11,951

(40.4%)

Accounts Rec.

$3,358

$3,748

(10.4%)

Inventory

$4,477

$2,815

59%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$6,880

$6,654

3.4%

Long-Term Debt

$2,256

$684

229.8%



Learn the ways of the balance sheet.

Cash Flow Checkup

Cash flow statement not provided. (What-ever.)

Find out why Fools always follow the money.

Related Companies:

  • Advanced Micro Devices (NYSE: AMD  )
  • Dell (Nasdaq: DELL  )
  • Hewlett-Packard (NYSE: HPQ  )
  • IBM (NYSE: IBM  )
  • Marvell Technology (Nasdaq: MRVL  )
  • Sun Microsystems (Nasdaq: SUNW  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Dell, Intel, and Microsoft are allMotley Fool Inside Valuepicks. Dell is also aMotley Fool Stock Advisorselection. Get 30 days of free access to either service by clicking on the appropriate link.

Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.


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