Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, July 19, 2006

Intel Earnings & Guidance

Intel (INTC) posted earnings at $0.15 EPS vs $0.13+e, and revenues $8.01 billion vs. $8.22 billion estimates. The company is guiding Q3 $8.3 to $8.9 billion versus the street's estimates of $9.1 billion. It said 49% was gross margins and the company took its 53%annual margin expectations down to the same 49%. So revenue guidance is soft and they are taking margins down. While this is much worse than expected, the street really looks like it was being stingy and demanding too much. If you look at the ticker tape over the last 3 months you would have thought they were already trying to price this in. Shares are down 1% after-hours at $18.00, but they had been down over 2%.

Jon C. Ogg
July 19, 2006

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