On July 17, chipper chip maker Intel
- Higher product volume and lower selling prices across all segments equals decent revenue growth overall.
- Management says that gross margins will improve by a couple of points in the next quarter, but don't expect an all-out end to the price war with AMD
(NYSE:AMD) this year. - The share buyback program has slowed to a crawl, but would return in full force if Intel had a couple of billion in spare cash flow to throw around. Right now, that's just not the case.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$8,680 |
$8,009 |
8.4% |
|
Net Profit |
$1,278 |
$885 |
44.4% |
|
EPS |
$0.22 |
$0.15 |
46.7% |
|
Diluted Shares |
5,917 |
5,868 |
0.8% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
47.0% |
52.1% |
(5.1) |
|
Operating Margin |
15.6% |
13.4% |
2.2 |
|
Net Margin |
14.7% |
11.1% |
3.7 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$8,926 |
$6,421 |
39.0% |
|
Accounts Rec. |
$2,531 |
$3,178 |
(20.4%) |
|
Inventory |
$4,127 |
$4,332 |
(4.7%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,179 |
$2,478 |
(12.1%) |
|
Long-Term Debt |
$1,848 |
$2,054 |
(10.0%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Capital Expenditures |
$1,278 |
$1,738 |
(26.5%) |
|
$1,213 |
$362 |
235.1% |
Free cash flow is a Fool's best friend.
Intel didn't give us the operating cash flow figure yet, but we do have enough info to figure the take-home owner earnings.
Related Foolishness:
- Before the Call: Collective Intel-igence
- Fool on Call: Inside Intel
- Another Path to Profit: Riding Intel's Coattails
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund was an AMD shareholder, but had no other position in any company mentioned. Intel is a Motley Fool Inside Value pick. Fool rules are here.
