Intel Gets Initial Cheer (INTC)

April 15, 2008 by Douglas A. McIntyre

Intel Corp. (NASDAQ: INTC) posted earnings after the close, and Wall Street is cheering the results so far.  It just posted $0.25 EPS on some $9.67 Billion in revenues.  First Call estimates were $0.25 on non-GAAP EPS on revenues of $9.63 Billion.

Gross margins for last quarter were 53.8%.  Total microprocessor unitswere lower sequentially with an average sale price approximately flat,and it spent $2.5 billion to repurchase 122 million shares of itscommon stock.  NAND revenue was flat as significant price declinesoffset unit growth.

Interestingly enough, the company noted a strengthening core business and solid global market environment on healthy demand for processors and chipsets across all segments.  It also remains optimistic about growth opportunities.

The chip and processor giant also put earnings guidance at $9 to $9.6 Billion in revenues and sees 56% margins.  Estimates for the coming quarter are $0.28 EPS on $9.28 Billion in revenues.  For 2008 the chip giant put guidance of 57% gross margin, plus or minus a few points.

What the street is liking is the positive core business comments coming out of the company.  As long as business is hanging in there, then Wall Street isn’t likely to punish it too much further.

Shares closed up 1% at $20.91 in regular trading and shares are up over 7% at $22.50 in after-hours trading.  The 52-week trading range is $18.05 to $27.99.

Jon C. Ogg
April 15, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.