The 10-second takeaway
For the quarter ended March 31 (Q1), Intel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted.
Gross margins expanded, operating margins dropped, net margins shrank.
Intel booked revenue of $12.91 billion. The 41 analysts polled by S&P Capital IQ wanted to see a top line of $12.85 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $12.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share on the same basis. GAAP EPS of $0.53 for Q1 were 5.4% lower than the prior-year quarter's $0.56 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 64.0%, 260 basis points better than the prior-year quarter. Operating margin was 29.5%, 290 basis points worse than the prior-year quarter. Net margin was 21.2%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $13.48 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $56.74 billion. The average EPS estimate is $2.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 8,731 members out of 9,320 rating the stock outperform, and 590 members rating it underperform. Among 2,005 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,919 give Intel a green thumbs-up, and 86 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 $27.75.
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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.