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Intel +2.9% AH on strong margin forecast, in-line revenue guidance

  • Intel (INTC) expects Q2 revenue of $12.5B-$13.5B vs. a $12.96B consensus. Full-year guidance for flat revenue growth (compares with a consensus for 0.8% growth) and capex of $10.5B-$11.5B is reiterated.
  • Q1 gross margin was 59.7%, -230 bps Q/Q and +350 bps Y/Y, and above a guidance midpoint of 59%. GM is expected to rise to 63% (+/- 2%) in Q2, and full-year GM guidance has been raised 100 bps to 61% (+/- a few percentage points).
  • Full-year R&D/MG&A spending guidance has been raised by $300M to $18.7B-$19.1B. While revenue rose just 1.7% Y/Y in Q1, opex rose 12% to $5.09B.
  • $545M was spent on buybacks, up from $528M in Q4.
  • Q1 results, PR
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Comments (12)
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    $545M was spent down the toilet. The press release says that they repurchased 22 million shares of stock, but the CFO says in his commentary that diluted shares outstanding increased by 14 million shares from the prior quarter.
    15 Apr 2014, 04:19 PM Reply Like
  • SimonSaysShort
    , contributor
    Comments (112) | Send Message
     
    And if they didn't do the buyback, then you would be complaining that the outstanding shares increased by 36 million shares.
    15 Apr 2014, 05:17 PM Reply Like
  • techy46
    , contributor
    Comments (8420) | Send Message
     
    Employee and officer stock options are handled best by buying back shares if the market price is below internal expectations and you want to grow dividends and EPS.
    15 Apr 2014, 07:30 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (5920) | Send Message
     
    Yes, Intel slowed down the buyback tremendously in 2013. The diluted share count has started to rise again, and it did in Q1 just like Q4. Not really a surprise.
    15 Apr 2014, 05:06 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    Not a surprise at all, just frustrating that they're taking credit for repurchasing shares in their press release.
    15 Apr 2014, 05:08 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (5920) | Send Message
     
    It's not taking credit for anything, it's just financial reporting for the quarter.
    15 Apr 2014, 05:13 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    It just sounds misleading to me, like they are leaving out a very important piece of information.
    15 Apr 2014, 05:19 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (5920) | Send Message
     
    It's not misleading. It's just information, and it is being presented in the same way they always do. Every company says stuff like this, but of course you have to read the details or a report (like my upcoming article) for the analysis of it.
    15 Apr 2014, 05:24 PM Reply Like
  • Jdeboer87
    , contributor
    Comments (302) | Send Message
     
    I was hoping they would throw-in a dividend increase?
    15 Apr 2014, 07:24 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9305) | Send Message
     
    Nope. Not yet.
    15 Apr 2014, 11:31 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (5920) | Send Message
     
    Dividend increase would probably be second half of this year, if any.
    15 Apr 2014, 11:47 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12085) | Send Message
     
    LOL strong margin expectation after bad earnings isn't a good consolation prize. Try cutting execs salary. It never ceases to amaze me that everyone believes in management bonus incentives and no one believes in management disincentives for failure.
    16 Apr 2014, 01:36 PM Reply Like
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