More on Intel: Q4 revenue guidance light, Q3 gross margin strong


Intel (INTC) expects Q4 revenue of $13.7B (+/- $500M) vs. a consensus of $14.02B. The company's 2013 capex guidance has been lowered again, this time to $10.8B (+/- $300M) from $11B (+/- $500M).

Q4 guidance is said to reflect the caution Intel is seeing in customer order patterns, as well as their efforts to "keep inventory levels lean."

Q3 gross margin was 62.4%, +410 bps and -90 bps Y/Y, and above a guidance midpoint of 61%. Gross margin is expected to come in at 61% (+/- 2%) in Q4.

PC CPU division sales +4% Q/Q and -3% Y/Y to $8.4B. ASPs flat Q/Q and +1% Y/Y.

Server CPU division sales were healthy, +6% Q/Q and +12% Y/Y to $2.9B. ASPs +2% Q/Q and +8% Y/Y.

Other Intel architecture (inc. Atom) +13% Q/Q and -9% Y/Y to $1.1B. Software/services +2% Q/Q and +6% Y/Y.

$500M spent on buybacks, down from $550M in Q2.

INTC +1.1% AH. CC at 5PM ET.

Q3 results, PR, CFO comments.

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Comments (16)
  • scorpion.bullfrog
    , contributor
    Comments (91) | Send Message
     
    Other IA down 9% year over year despite winning 130 new tablet designs!?!??
    15 Oct 2013, 04:30 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9709) | Send Message
     
    They haven't started to ship to end users yet, so OEMs aren't ready to load the boat with BYT inventory just yet. Also, Other IA includes 3G modems which as I told you are on the decline. Other IA should have a better year next year as LTE modems ramp and Bay Trail/Merrifield ramp in 1H 2014 and then Cherry Trail/Moorefield ramp in 2H 2014.

     

    Bay Trail-M, I believe, is not counted as part of Other IA.
    15 Oct 2013, 04:34 PM Reply Like
  • scorpion.bullfrog
    , contributor
    Comments (91) | Send Message
     
    So we should hear some very good guidance for other IA on the call shortly. Thanks Ashraf, love reading your articles. Intel's Other IA is the story here. Glad to see y/y rev growth in servers! But the real focus is Other IA.
    15 Oct 2013, 04:45 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9709) | Send Message
     
    Indeed. Other IA is also fighting the death of the netbook, which makes the Y/Y compares a little weird at first.
    15 Oct 2013, 04:50 PM Reply Like
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
     
    @scorpion.bullfrog - a lot of those windows 8 tablets have iCore processors
    15 Oct 2013, 05:21 PM Reply Like
  • scorpion.bullfrog
    , contributor
    Comments (91) | Send Message
     
    I guess I don't fully understand what iCore processors are. I'm assuming they're the more expensive chips.?? Is Intel counting these as PC instead of Other IA?
    15 Oct 2013, 05:29 PM Reply Like
  • 10208741
    , contributor
    Comments (136) | Send Message
     
    Apparently the greatest win Intel did by getting Samsung chose Atom CT+ for Galaxy Tab 3 10.1 yielded extremely positive results ;-D

     

    As far as Infineon Wireless is concerned the writing was clearly on the wall when Intel purchased the RF unit from Fujitsu. I had already alluded to it in my comment at a different fan article

     

    http://seekingalpha.co...
    15 Oct 2013, 10:28 PM Reply Like
  • scorpion.bullfrog
    , contributor
    Comments (91) | Send Message
     
    And PC down just 3% y/y... The market should be VERY happy with that after the s**t IDC was saying earlier this year. Lovin' my April calls right now!
    15 Oct 2013, 04:48 PM Reply Like
  • Todd Campbell
    , contributor
    Comments (279) | Send Message
     
    It's going to be interested to see how semi equip investors digest the capex number. Historically, book-to-bill bottoms in fall and runs through winter. I put the historical book-to-bill chart on my blog here for reference: http://bit.ly/SbBA5p
    15 Oct 2013, 04:49 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (471) | Send Message
     
    CFO comments said that total shares outstanding decreased by only 6 million shares from Q2. That doesn't seem like very many, given that there are over 5 billion shares outstanding.
    15 Oct 2013, 04:53 PM Reply Like
  • scorpion.bullfrog
    , contributor
    Comments (91) | Send Message
     
    The press release says they repurchased 1/2 a billion worth, 24 million shares. Looks like these execs have been busy granting themselves the company. Don't get me started on employee stock option grants...
    15 Oct 2013, 05:16 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (471) | Send Message
     
    Right, the PR says 24 million, but the CFO comments say only 6 million. Did they grant themselves 18 million shares?
    15 Oct 2013, 05:55 PM Reply Like
  • LMMALM
    , contributor
    Comments (5) | Send Message
     
    CFO also comments: (Q4) Revenue is expected to be $13.7B, plus or minus $500M in the fourth quarter. The midpoint of this range
    is up 2% from the third quarter.
    15 Oct 2013, 05:08 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10056) | Send Message
     
    Due to the continuing circus act in Washington, there isn't a CEO in America that will put their neck out there and give upbeat Guidance.

     

    IMO , we can totally discount any "light" guidance that is projected during this earnings quarter..

     

    As far as INTC, their demise has been greatly exaggerated..
    15 Oct 2013, 05:29 PM Reply Like
  • 8001381
    , contributor
    Comments (20) | Send Message
     
    Any reason given for the one quarter delay in the 14 nm ramp??
    15 Oct 2013, 09:23 PM Reply Like
  • kjurden
    , contributor
    Comments (1913) | Send Message
     
    Houston we have a little problem here!!!

     

    No Wonder INTL fanboys have been spreading FUD about AMD!!! INTL is losing market shares to AMD....Well, at least now the general public will know the truth. Next time Wall Street may want to listen to INTL, instead of trying to create a bunch of hype, like "Intel Shares are Set to Skyrocket"...the day before the other shoe falls.
    22 Nov 2013, 09:10 AM Reply Like
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