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.
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.
- Add Intel to My Watchlist.
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 recommend 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.
More from The Motley Fool
Intel Corp.'s Upcoming Core i9-8950HK Processor Looks Incredible
This Fool is impressed.
2 Dividend-Paying Self-Driving Car Stocks You Can Buy Today
NVIDIA and Intel are positioned to reward investors while they wait for self-driving cars to enter the mainstream.
It Sounds Like Intel Was Neglecting This Key Area
Though it appears to be on the right track now.