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Intel (INTC) Q109 EPS of 11 cents beats by 8 cents. Revenues $7.1B vs. consensus $6.98B. [PR]

Intel (INTC) Q109 EPS of 11 cents beats by 8 cents. Revenues $7.1B vs. consensus $6.98B. [PR]
Comments (8)
  • cooldove
    , contributor
    Comment (1) | Send Message
     
    good, but price down after closing
    14 Apr 2009, 04:45 PM Reply Like
  • Trade Radar Operator
    , contributor
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    If you look deeper into the numbers, the picture is not so rosy. They didn't take as huge a write-down as expected on certain assets and their tax rate was 1% instead of the expected 27%. Processor sales were down significantly. Don't get me wrong, the company did well under the circumstances, but this is not short sellers manipulating the market.
    14 Apr 2009, 04:52 PM Reply Like
  • Just Curious 2
    , contributor
    Comments (28) | Send Message
     
    It's good news for main street nevertheless-another indication bad news is drying out?
    14 Apr 2009, 04:55 PM Reply Like
  • threepointer
    , contributor
    Comments (7) | Send Message
     
    So PER is 36, uh??
    14 Apr 2009, 05:02 PM Reply Like
  • Patient Capital
    , contributor
    Comments (176) | Send Message
     
    That's how I took it - in the back of my head I've expected numbers slightly better than expectations because of decreasing inventories and some businesses/people have been holding back major purchases for as long as they can but some are realizing they can't for much longer.

     

    I'd say that this news is good for letting others know that this could be the end of a huge fear of everything collapsing entirely.

     

    On Apr 14 04:55 PM Just Curious 2 wrote:

     

    > It's good news for main street nevertheless-another indication bad
    > news is drying out?
    14 Apr 2009, 05:13 PM Reply Like
  • Jaro65
    , contributor
    Comments (5) | Send Message
     
    Not too bad, considering the environment.
    14 Apr 2009, 05:20 PM Reply Like
  • Ben Young
    , contributor
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    I can't remember buying anything from intel for the last 3 years. I have no need for the faster and faster processors. My next purchase will be a smartphone. Perhaps someone can tell me where the demand/growth will come from?
    14 Apr 2009, 05:22 PM Reply Like
  • Patient Capital
    , contributor
    Comments (176) | Send Message
     
    First, let's not undervalue their current desktop/laptop/server processor lineup, this is a very powerful segment.

     

    Second, growth might come from a few different places:
    - increased international consumption. Unlike food and other goods, the price they pay for computing is very similar to our's, and so as their economies grow, they will be able to afford more
    - at some point, they will venture more into the smartphone market. Intel knows it's going on and so they're doing a little bit with netbooks, but that isn't game changing for me personally. The processor they made for it though, the Atom, is going to be made on their next (32nm? forgot the number...) manufacturing process which will allow it to use less power, be smaller in size, etc. and that's when we might begin to see it in the smartphone market
    - if they continue working on those smaller processors, it's possible more and more things will become enabled by their power. Your car will get its radio from the internet someday, have more functions built into it, all powered by a processor, which hopefully is an Intel chip

     

    Intel is facing competition in that area more than they have seen in the desktop/server market (from what I understand, could be wrong) and so there is some risk involved. The reason I've got my money on Intel though, is that they have manufacturing capabilities that not everyone can develop quickly. They face competition there as well from AMD with the spinoff of their foundry as a separate entity. Personally, I think their economic moats with future R&D (not just a single product company) and manufacturing capabilities will keep them pushing forward and ahead of others. If they face specific competition in niche markets, I think they have the power of just buying out the other company.

     

    Intel is one of those companies that is constantly searching for things that could put themselves out of business (Innovator's Dilemma) and with the release of products like the Atom that could potentially hurt higher margin product sales a little, I think they realize that they need to grasp the future and not try to fight it. That doesn't mean they'll win, but there's the chance that this stock is the next "Coca Cola" and that instead of having 1 device enabled by an Intel processor, we will use 7 devices in our daily lifecycles enabled by it including our cars, ebook readers, phones, computers, and anything else that could benefit from it.

     

    While I list all those niches though, it doesn't mean it will win all of those. Coca Cola doesn't have every market entirely, but it's still a very strong company with an amazing product.

     

    With all that said, I have a portion of my money riding on Intel because of their wide economic moats.

     

    On Apr 14 05:22 PM ben young wrote:

     

    > I can't remember buying anything from intel for the last 3 years.
    > I have no need for the faster and faster processors. My next purchase
    > will be a smartphone. Perhaps someone can tell me where the demand/growth
    > will come from?
    14 Apr 2009, 06:36 PM Reply Like
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