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Intel (INTC): Q1 EPS of $0.40 misses by $0.01. Revenue of $12.58B (-2.5% Y/Y) misses by $30M....

Intel (INTC): Q1 EPS of $0.40 misses by $0.01. Revenue of $12.58B (-2.5% Y/Y) misses by $30M. Expects Q2 revenue of $12.4B-$13.4B vs. $12.9B consensus. Expects "low single-digit" 2013 revenue growth, unchanged from prior guidance and compares with 0.7% consensus. Lowers 2013 capex guidance range by $1B to $11.5B-$12.5B. Shares +2.1% AH. CC at 5PM ET (webcast). (PR)
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Comments (32)
  • Rose_Colored_Glasses
    , contributor
    Comments (955) | Send Message
     
    Surprised to see the AH jump - INTC negativity really baked in. Cmon market - its not liked they wouldn't have warned if they had a train wreck.
    16 Apr 2013, 04:09 PM Reply Like
  • Joe2922
    , contributor
    Comments (421) | Send Message
     
    Intel has been a dead man walking for years, its stock has gone nowhere but sideways, and it, txn, amat, a few other bigs are over half the SOXX index, which leads the naz, which leads the market, and I don't care what Jimmy Cramster or any other talking goofball long-only permabulls on cnbc mutter, the market has peaked, or will peak very soon. cnbc needs a bull market for its ratings, that is fact.
    Now is a great time to cash in or short this 49 month old bull because the Bears will thrive this summer. Great technical analysis of it:
    http://bit.ly/WpVqYk
    16 Apr 2013, 05:12 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5354) | Send Message
     
    Best of luck with your investment strategy
    16 Apr 2013, 06:55 PM Reply Like
  • DougTheHed
    , contributor
    Comments (12) | Send Message
     
    Cnbc needs panic and uncertainty for survival... Why do you think they push it so hard?
    16 Apr 2013, 11:56 PM Reply Like
  • Matt Blecker, CFA
    , contributor
    Comments (168) | Send Message
     
    The trend looks terrible here. The margin decline and massive decline in PC and Data Center operating income, as well as the tremendous cap ex requirement is definitely worrisome. I would never short Intel because of their tremendous capability in terms of R & D and manufacturing, but I cannot see a reason to go long at this point. Those who are long are betting that Intel's competitive advantage in PCs and servers will carry over to mobile. It is certainly possible, but there are risks inherent in a long position. The combination of huge cap ex requirements and declining PC and now Data Center operating income might not bode well for future earnings.
    16 Apr 2013, 04:23 PM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (955) | Send Message
     
    Can't argue with you - am long INTC and generally am a disappointed and frustrated shareholder. The glimmer of hope I see is that PC sales were down horribly and INTC revenues were down only in low single digits. The day, if it comes, when PC sales drop and INTC revenue goes up - it should be a catalyst for a nice run up.
    16 Apr 2013, 05:04 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    Data Center revenue and operating earnings were up YoY, not down. If you're comparing against Q4 they're down, as is seasonally normal.
    16 Apr 2013, 05:15 PM Reply Like
  • Joe2922
    , contributor
    Comments (421) | Send Message
     
    Up in raw numbers or per share numbers? Biggest reason for the market being strong is fewer stocks, fewer shares out, supply/demand, and w/o Uncle Ben's fake money, market can't stand on its own. Sad, steal from savers to feed the rich.
    16 Apr 2013, 05:20 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    Actually I see DCG operating earnings are down slightly YoY. DCG revenues were up 7.5% YoY.
    16 Apr 2013, 05:22 PM Reply Like
  • Matt Blecker, CFA
    , contributor
    Comments (168) | Send Message
     
    Data Center Operating Income was down year-over-year:

     

    For the Quarter Ended:

     

    3/31/12 $1.135 billion
    3/30/13 $1.079 billion

     

    Revenue was up but margins are obviously lower so operating income was down. This is supposed to be the strongest segment. I do not want to make too much out of one quarter but the decline is worrisome, especially when the bulk of your operating income, derived from PCs, is absolutely cratering:

     

    For the Quarter Ended:

     

    3/31/12 $3.491 billion
    3/30/13 $2.513 billion

     

    Plus to make matters worse:

     

    1) Huge Cap Ex requirement
    2) A negligible amount of net cash compared to MSFT or AAPL or CSCO
    3) All other segments are still posting sizeable losses

     

    Intel's only option is to bet big on mobile. Will it work? Maybe. Maybe not.
    16 Apr 2013, 05:28 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    I don't see Intel interested in mobile. Seems like a good short candidate in that case.
    16 Apr 2013, 05:43 PM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (588) | Send Message
     
    I have been following the company very closely over the past few months or so and I see a lot of the same things Matt has spoken of, which is why I have not purchased yet (other than 20 shares to watch it). Looking at the 10 year history, it's also easy to see that this isn't a 'simple' investment...... Models are kind of pointless.

     

    One key takeaway from the last conference call was the language about entering into partnerships where it makes sense...

     

    'To the extent that we engage with these foundry customers, we want to make money at it. We want to get paid in terms of margin and we want to get a return on our invested capital commensurate with our technology leadership.'

     

    This is an area of growth for them, and I think a bet in INTC really centers on this topic. It is a certainty that eventually Intel will have superior technology in microprocessors compared to everyone else (ARM users and all mobile devices included). The question is can they still charge what they have traditionally charged for that...... Will partners, and customers whether they are mobile or desktop, demand lower prices? Or will they have to suck it up and pay INTC back for all the cap-ex it took to build those fabs? Simply, can they still operate at 60+% GM 5-10 years from now?

     

    In 10 years time, the world will still be using microprocessors and they will still require large amounts of capital to build.... I don't know how the economics really change if the demand is still there for cutting edge processors. The question really is whether people think the world can remain as productive using Windows 7 on hardware built today during the year 2020. Those types of bets haven't been good ones for the last 30 years......

     

    Another important issue is whether the buyback program is any good. With all the issuance, it complicates the investment process.....

     

    Good luck!
    16 Apr 2013, 06:36 PM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Once again, CNBC does a poor job of reporting the facts on INTC. Here are the facts:

     

    1. EPS down 24.53% year over year, for same quarter as last year.
    2. EPS down 16.67% from previous quarter.
    3. Revenue down 2.53% from year earlier quarter.
    4. Revenue down 6.66% from previous quarter.
    5. Outlook for the rest of the year "negative".

     

    The reason most of the companies are matching or beating estimates of EPS is lowered estimates by analysts. Companies are not really doing better by beating lowered expectations.

     

    I am really surprised that INTC is not down 10%.
    16 Apr 2013, 05:57 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9084) | Send Message
     
    Rickthegeek,

     

    You're surprised because you aren't seeing the broader picture. It's okay. Please short.
    16 Apr 2013, 06:10 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    Rick,
    Looks like a very good result. Basically revenue was seasonally down from Q4, something that should not have been expected given the IDC and Gartner numbers implying that results should have been far below seasonally down.

     

    Otherwise you have one-time events like Haswell start-up costs (that Intel says will peak in the current quarter) and inventory charges as they built up Haswell inventory pre-qualification that they'll get back as that ships out. You also have older product inventory being flushed out.

     

    Difficult to spin this as negative, particularly with all the products in the pipeline and ready to launch this year (Haswell, Bay Trail, Avoton) as well as Merrifield arriving early next year.
    16 Apr 2013, 08:53 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Yes, You pounded the table at 28 U see the picture !
    17 Apr 2013, 02:45 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9084) | Send Message
     
    bigthinker, why do you continually troll me regarding INTC? ;)
    17 Apr 2013, 10:56 AM Reply Like
  • RS055
    , contributor
    Comments (2857) | Send Message
     
    Companies like Intel and Exxon Mobil play a very long game. They are in the catbird seat of the technologies and assets that drive the world. real big picture stuff - Energy, Computation.
    These are strategic assets.
    If the US were willing , I bet China would pay a 50% premium for just these two companies . Of course China can dream on - because it will never happen. Its strategic.
    So - I feel fortunate that these companies are actually available for purchase by individuals. And actually even pay nice dividends. So , I dont worry too much about the quarterly analyst games.
    16 Apr 2013, 07:29 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Exactly, the capex spending this year was really about 2017 and beyond, not the next quarter.
    17 Apr 2013, 12:10 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    $ 21.02 now ! U Coulda dumped it !
    16 Apr 2013, 07:32 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    Bugthunker, did u dumbpt ith on $21.02 affer ours laest nigth? Donith sawd that printh.
    17 Apr 2013, 02:49 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    I would touch INTC with your $s.. I was answering the 22.80 dad above who coulda sold.I just posted the current price ! As they were dogging the shorts thinking it was up ! :)
    17 Apr 2013, 03:29 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    holied cowed! No sawd dat b4. Trollied is fund, ain'td it?
    17 Apr 2013, 03:40 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    Really a pretty poor report misses on EPS, Rev, and guidance widening (which means guidance reduction or that they have no clue) Perhaps its not down more because of all the death of the PC talk being premature.....its more like a cancerous wasting away of the PC
    16 Apr 2013, 08:32 PM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (955) | Send Message
     
    Well I guess this is how it ends for Mr. Otellini - not with a bang but a whimper. Dedicated guy - hope he really enjoys his retirement.
    16 Apr 2013, 08:54 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    No need to cry for him RCG. He knows what's coming and I believe he has a few shares that will benefit. That Wall Street doesn't see what he sees ahead is nothing new.
    16 Apr 2013, 08:57 PM Reply Like
  • JIMSK
    , contributor
    Comments (137) | Send Message
     
    what is the eps number for the qtr ??
    jim
    16 Apr 2013, 10:15 PM Reply Like
  • JIMSK
    , contributor
    Comments (137) | Send Message
     
    i am looking for the book value and the eps number for the qtr .
    jim
    16 Apr 2013, 10:16 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9084) | Send Message
     
    $0.40.
    16 Apr 2013, 10:36 PM Reply Like
  • bennene
    , contributor
    Comment (1) | Send Message
     
    I am long INTEL, I still believe in the they can turn it around with the mobile story, just might not be soon.
    17 Apr 2013, 12:02 AM Reply Like
  • patt2374
    , contributor
    Comments (572) | Send Message
     
    Write off Intel at your own peril.
    Take a look at this presentation before doing so:

     

    http://bit.ly/12la6ge

     

    open in Explorer - won't function correctly in Chrome
    17 Apr 2013, 12:26 AM Reply Like
  • DGI_Dan
    , contributor
    Comments (77) | Send Message
     
    I think market is looking at Intel in long run. Also market is buying up mostly defensive and dividend paying companies now (take look at KO, JNJ from yesterday). I am long INTC.
    17 Apr 2013, 06:24 AM Reply Like
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