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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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.