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.
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 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.