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

By Seth Jayson – Updated Apr 10, 2017 at 1:52PM

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Just the facts, Fool.

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.

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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. 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.

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