The 10-second takeaway
For the quarter ended June 29 (Q2), Intel met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Intel booked revenue of $12.81 billion. The 42 analysts polled by S&P Capital IQ expected to see a top line of $12.89 billion on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $13.50 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 $0.39. The 42 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.39 for Q2 were 28% lower than the prior-year quarter's $0.54 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 58.3%, 510 basis points worse than the prior-year quarter. Operating margin was 21.2%, 720 basis points worse than the prior-year quarter. Net margin was 15.6%, 530 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $13.71 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $53.47 billion. The average EPS estimate is $1.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 9,433 members out of 10,056 rating the stock outperform, and 623 members rating it underperform. Among 2,065 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,980 give Intel a green thumbs-up, and 85 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 $23.68.
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