Intel Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Intel (NAS: INTC) reported earnings on Oct. 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 29 (Q3), Intel beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.


Margins shrank across the board.

Revenue details
 Intel logged revenue of $13.46 billion. The 44 analysts polled by S&P Capital IQ expected a top line of $13.20 billion on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $14.23 billion.

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 $0.60. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.58 for Q3 were 11% lower than the prior-year quarter's $0.65 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 63.3%, 10 basis points worse than the prior-year quarter. Operating margin was 28.5%, 510 basis points worse than the prior-year quarter. Net margin was 22.1%, 230 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $13.65 billion. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $53.32 billion. The average EPS estimate is $2.21.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 9,028 members out of 9,627 rating the stock outperform, and 599 members rating it underperform. Among 1,956 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,848 give Intel a green thumbs-up, and 108 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intel is outperform, with an average price target of $26.06.

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The article Intel Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Intel. Motley Fool newsletter services recommend 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.

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