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Intel Third Quarter Earnings
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Intel (Nasdaq:INTC) announced its results for the third quarter on October 16, 2012. Intel develops advanced integrated digital technology products for industries such as computing and communications.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Intel missed estimates with 58 cents per share and revenues of $13.46 billion. Analysts were expecting 61 cents per share and revenues of $13.56 billion. Revenue fell 5.5% from the same period last year while EPS is down 10.8%. Slumping revenue in the last quarter ends Intel's streak of four consecutive quarters of revenue increases. The company's net income for the quarter was $2.97 billion. This is a 14.3% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 4.3% in the second quarter and 13.4% in the first quarter.
Management Quote: "Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel president and CEO. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."
A Look Back: Net income has dropped 1.8% year-over-year on average across the last five quarters. Performance was hurt by a 14.3% decline in the most recent quarter from the year-earlier quarter.
The company's cost of sales dropped to $4.94 billion, down 5.2% from 36.6% of revenue in the year-earlier quarter.
Looking Ahead: For the next quarter, analysts are growing pessimistic about the company's expected results. The average estimate for the fourth quarter is 72 cents per share, dropping from 77 cents a month ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $2.50 a share to $2.41 over the last 90 days.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Intel missed estimates with 58 cents per share and revenues of $13.46 billion. Analysts were expecting 61 cents per share and revenues of $13.56 billion. Revenue fell 5.5% from the same period last year while EPS is down 10.8%. Slumping revenue in the last quarter ends Intel's streak of four consecutive quarters of revenue increases. The company's net income for the quarter was $2.97 billion. This is a 14.3% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 4.3% in the second quarter and 13.4% in the first quarter.
Management Quote: "Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel president and CEO. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."
A Look Back: Net income has dropped 1.8% year-over-year on average across the last five quarters. Performance was hurt by a 14.3% decline in the most recent quarter from the year-earlier quarter.
The company's cost of sales dropped to $4.94 billion, down 5.2% from 36.6% of revenue in the year-earlier quarter.
Looking Ahead: For the next quarter, analysts are growing pessimistic about the company's expected results. The average estimate for the fourth quarter is 72 cents per share, dropping from 77 cents a month ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $2.50 a share to $2.41 over the last 90 days.
by
Investopedia Staff
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