Intel Delivers Huge Quarter

Yesterday I said that I expected Intel (INTC) to report earnings of 35 cents a share which was well above Wall Street’s consensus of 30 cents a share. Even my optimistic estimate was too low. The company just reported earnings of 40 cents a share.
Here’s a look at their future guidance:

Q1 2010
* Revenue: $9.7 billion, plus or minus $400 million.
* Gross margin percentage: 61 percent, plus or minus 2 percentage points.
* R&D plus MG&A spending: Approximately $3 billion.
* Amortization of acquisition-related intangibles and costs associated with the Wind River acquisition: Approximately $20 million.
* Impact of equity investments and interest and other: Gain of approximately $20 million.
* Depreciation: Approximately $1.1 billion.
Full-Year 2010
* Gross margin percentage: 61 percent, plus or minus 3 percentage points.
* Spending (R&D plus MG&A): $11.8 billion, plus or minus $100 million.
* R&D spending: Approximately $6.2 billion.
* Tax rate: Approximately 30 percent.
* Depreciation: Approximately $4.4 billion, plus or minus $100 million.
* Capital spending: Expected to be $4.8 billion, plus or minus $100 million.

That Q1 revenue target of $9.7 billion +/-$400 million is well above Wall Street’s consensus of $9.35 billion.

Posted by on January 14th, 2010 at 4:17 pm


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