Intel Corporation (INTC) - NASDAQ
  • Wed, Jul. 20, 4:07 PM
    • Intel (NASDAQ:INTC): Q2 EPS of $0.59 beats by $0.06.
    • Revenue of $13.5B (+2.3% Y/Y) misses by $40M.
    • Shares -3.3%.
    • Press Release
    | Wed, Jul. 20, 4:07 PM | 43 Comments
  • Tue, Jul. 19, 5:35 PM
  • Tue, Apr. 19, 4:42 PM
    • In tandem with its Q1 report, Intel (NASDAQ:INTC) says it will cut up to 12K positions (11% of its workforce) "through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs." The company adds it "plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses."
    • The restructuring, which confirms a recent report from The Oregonian, is expected to yield a $1.2B charge and produce $1.4B/year worth of savings by mid-2017. Most of the actions will be finished in the next 60 days.
    • CFO Stacy Smith will "transition to a new role at the company, leading sales, manufacturing and operations once his successor is in place." A search for a successor has begun.
    • Gross margin/capex: In addition to slightly cutting full-year sales guidance, Intel has lowered its full-year gross margin guidance to 62% (+/- 2%) from 63% (+/-2%). Q1 GM was 62.7%, down 210 bps Q/Q and up 130 bps Y/Y, and above a 62% guidance midpoint. However, Q2 GM guidance is at 61% (+/- 2%). The 2016 capex budget is still at $9.5B (+/- $500M).
    • PC/mobile CPUs: In spite of a very weak PC market, Client Computing Group revenue rose 2% Y/Y to $7.5B, with a 19% increase in ASPs offsetting a 15% drop in volume. Op. profit rose 34% to $1.89B (improving mobile margins).  Desktop volume -4%, ASP +6%. Notebook volume -2%, ASP flat. Tablet volume -44%, ASP "up significantly."
    • Data Center Group: Revenue rose 9% to $4B, with volume rising 13% and ASP dropping 3% thanks to strong networking/storage unit growth. Intel has been targeting a ~15% near-term Data Center Group revenue CAGR. Op. profit rose 4% to $1.76B.
    • Other segments: IoT Group revenue +22% to $651M; op. profit rose to $123M from $87M a year ago. Non-volatile memory (NAND/NOR flash) revenue -6% to $557M; the unit had a $95M op. loss vs. a $72M year-ago op. profit. Security revenue +12% to $537M; op. profit rose to $85M from $15M.

      Programmable Solutions (Altera) revenue was $359M; Intel says the unit saw mid-single digit growth after accounting for $99M in deferred revenue. The business had a $200M op. loss (integration expenses presumably weighed). "All other" revenue totaled $50M vs. $76M a year ago, with op. loss rising to $994M from $669M.
    • Financials: $793M was spent to buy back 27M shares. Q1 EPS benefited from an 18.4% tax rate (up from 16% in Q4, but down from 25.5% a year ago). Intel now expects a 22% tax rate for the year's remaining quarters, down from 25%.

      Ahead of the job cuts, R&D/MG&A spend (boosted by Altera) rose 9% Y/Y to $5.4B. Intel ended Q1 with $15.1B in cash ($14B offshore) and $25.4B in debt.
    • INTC -2.4% after hours to $30.81, after coming off a halt.
    • Intel's results/guidance, earnings release (.pdf), CFO commentary (.pdf)
    | Tue, Apr. 19, 4:42 PM | 19 Comments
  • Tue, Apr. 19, 4:06 PM
    • Intel (NASDAQ:INTC): Q1 EPS of $0.54 beats by $0.07.
    • Revenue of $13.8B (+8.0% Y/Y) misses by $30M.
    • Expects Q2 revenue of $13.5B (+/- $500M), below a $14.16B consensus.
    • Expects mid-single digit 2016 revenue growth vs. prior guidance of mid-to-high single-digit growth. Consensus is for 5.3% growth.
    • Shares are halted.
    • Press Release (.pdf)
    • Update: Intel also announces it's cutting up to 12K jobs (11% of its workforce) through a restructuring. A $1.2B charge is expected. $1.4B/year in cost savings are expected by mid-2017.
    • Update 2: CFO Stacy Smith will be transitioning to a new role at Intel - he'll lead sales, manufacturing, and operations. A search has begun for a new CFO.
    • Update 3 (4:54PM ET): After coming off a halt, Intel is down 2.9% after hours. More details on the restructuring and Q1 results can be found here.
    | Tue, Apr. 19, 4:06 PM | 78 Comments
  • Mon, Apr. 18, 5:35 PM
    | Mon, Apr. 18, 5:35 PM | 4 Comments
  • Fri, Jan. 15, 1:29 PM
    • Intel (INTC -8.5%) has received a mixture of target hikes and cuts (and no downgrades) after posting a Q4 beat, providing above-consensus sales guidance (aided by the Altera acquisition), and reporting weaker-than-expected Data Center Group (DCG) sales growth. Nonetheless, shares have dropped below $30 for the first time since October.
    • Aside from DCG's performance, analysts have voiced concern about earnings call remarks (transcript) indicating Chinese demand, as well as Asian demand in general, is soft among both consumers and enterprises. CEO Brian Krzanich: "I would say [the weakness] is a little bit heavier on the client-side, so the PC side than the data center side, but we are seeing some of it on the data center side as well..."
    • Goldman's James Covello (Sell rating): "Intel noted that organic 1Q trends are at the low end of seasonal, primarily due to weaker demand in China in consumer and enterprise PCs, which in turn drove higher internal inventory; We believe investors will be focused on whether DCG growth can return to the mid-teens target range after three quarters of sub-15% [Y/Y] growth..."
    • Bernstein's Stacy Rasgon (Market Perform): "We had already believed “mid-teens” growth targets for DCG are optimistic, a point of view that seems to be gaining credibility given the company’s commentary on end demand. And of course PCs still don’t look great either ... Our estimates go up, but the drivers are low-quality, and purely non-operational (exclusion of amortization, a lower tax rate, and the aforementioned accounting games)."
    • MKM's Ian Ing (Buy): "Intel has turned more cautious on growth since the November analyst day, particularly given uncertain China ... This not only affects client computing but data center as well, as management affirmed only double-digit growth for this segment instead of a mid-teens target."
    • Rosenblatt's Kinngai Chan (no rating): "While the current demand climate remains soft due to uncertainty in the emerging market regions, we believe Intel could begin to outperform starting from 2Q16 mainly due to product cycle refresh in both the Datacenter and the PC client segments."
    • Also mentioned on the earnings call 1) Krzanich argues growing sales to the telco/networking market (where Intel has less than 10% penetration, and where NFV growth is providing a lift) will help DCG deliver double-digit 2016 growth. 2) PC CPU ASPs benefited from higher sales of Intel's Core i7 and gamer-focused K-series CPUs. 3) Over 40% of server CPU volumes for cloud clients involved custom SKUs. 4) Memory sales rose over 20% Y/Y.
    • Prior Intel coverage
    | Fri, Jan. 15, 1:29 PM | 44 Comments
  • Thu, Jan. 14, 4:33 PM
    • Helping Intel (NASDAQ:INTC) deliver a big Q4 EPS beat: Gross margin was 64.3%, +130 bps Q/Q and -110 bps Y/Y, and above a guidance midpoint of 62%. Q1 non-GAAP GM guidance is also at 62% (+/-2%). Full-year GM guidance is at 63% (+/- 2%).
    • Also helping: Intel's tax rate was just 16%, down from 26.9% in Q3 and 21.4% a year ago. 2016 tax rate guidance is at ~25%. Meanwhile, the 2016 capex budget has been cut by $500M to $9.5B (+/- $500M). (Intel's November guidance)
    • Server CPUs: Worrying the Street: Data Center Group (DCG - server CPU/network processor) revenue rose just 5% Y/Y in Q4 to $4.31B, after growing 12% in Q3. Volumes +7% Y/Y, ASPs -1%. Division op. income fell 4% Y/Y to $2.17B. Intel previously forecast a 15% CAGR for DCG through 2018.
    • PC/mobile CPUs: Aided by Intel's Skylake CPU ramp and a positive mix shift, Client Computing Group revenue fell just 1% Y/Y to $8.76B in spite of a weak PC market, an improvement from Q3's 7% drop. Volumes -16% Y/Y, but ASPs +17%. Desktop volumes -9%, ASPs +9%. Notebooks volumes -10%, ASPs +6%. Tablet volumes -33%, ASPs "up significantly." Division op. income -4% to $2.72B.
    • Other segments: Internet of Things Group (embedded CPU) revenue +6% Y/Y to $625M; op. income -25% to $132M. Software/services revenue -3% to $543M; op. income up over 3x to $91M. "All other" (flash memory, one-time charges, divested businesses) revenue +11% to $682M; op. loss of $817M vs. $852M a year ago.
    • Financials: $525M was spent to buy back 17M shares. R&D/MG&A spend rose 4% Y/Y to $5.2B. Intel ended Q4 with $25.3B in cash/investments, and $22.7B in debt. Inventories were up $900M Y/Y to $5.2B.
    • INTC -3% after hours to $31.77.
    • Intel's results/guidance, earnings release (.pdf), CFO commentary (.pdf)
    • Update (7:15PM ET): Intel is now down 4.7% after hours. Though Intel's Q1 sales guidance is above a Thomson/First Call consensus of $13.86B at the midpoint ($14.1B), some estimates used by the consensus might not have been updated to account for the Altera acquisition - Altera has been expected by the Street to post Q1 sales of $423M. Bloomberg's Q1 Intel revenue consensus was at $14.2B. CEO Brian Krzanich on the earnings call: "While the outlook for the first quarter reflects some caution for overall demand, particularly in China, we continue to expect solid growth in the business in 2016."
    | Thu, Jan. 14, 4:33 PM | 23 Comments
  • Thu, Jan. 14, 4:05 PM
    • Intel (NASDAQ:INTC): Q4 EPS of $0.74 beats by $0.11.
    • Revenue of $14.91B (+1.3% Y/Y) beats by $110M.
    • Expects Q1 revenue of $14.1B (+/- $500M), above a $13.86B consensus at the midpoint.
    • Expects mid-to-high single-digit 2016 revenue growth. Consensus is for 5.6% revenue growth.
    • Shares -2.6% after hours.
    | Thu, Jan. 14, 4:05 PM | 59 Comments
  • Wed, Jan. 13, 5:35 PM
    | Wed, Jan. 13, 5:35 PM | 4 Comments
  • Nov. 19, 2015, 11:58 AM
    • Intel (INTC +1.4%) has used its 2015 investor meeting (currently underway, webcast) to forecast 2015 revenue of $55.2B, in-line with a $55.25B consensus. Shares are trading higher after starting the day nearly flat.
    • Separately, Intel has promised its first Xeon server CPUs to be paired with soon-to-be-acquired Altera's FPGAs will arrive in Q1 2016. In 2014, Intel unveiled plans to provide Xeon CPUs that come with an in-package FPGA to accelerate the performance of algorithms and other code on the fly. Web/cloud service providers are among the expected buyers.
    • Intel estimates FPGAs will be used in 30% of data center servers by 2020. Altera archrival Xilinx is trying to counter Intel by partnering with IBM (for Power CPUs) and Qualcomm (for ARM server CPUs). In addition to its FPGA efforts, Intel has a Xeon-related partnership with programmable ASIC maker eASIC.
    • Update (12:48PM ET): Intel has guided for mid-single digit 2016 revenue growth, and hiked its quarterly dividend by $0.02 to $0.26/share.
    | Nov. 19, 2015, 11:58 AM | 7 Comments
  • Oct. 14, 2015, 1:48 PM
    • Intel (INTC +1.8%) started the day lower after delivering a Q3 beat with the help of strong PC CPU ASPs, providing in-line Q4 guidance, and cutting its full-year server CPU division (DCG) growth forecast. Helping out: The Philadelphia Semi Index is up 3.3%, buoyed by reports SanDisk and Fairchild are on the block.
    • Summit Research's Srini Sundarajan has upgraded Intel to Buy, and several other firms have hiked their targets. Sundarajan: "Guidance was easily achieved in C3Q15 despite a fall in number of units due to customer preference for latest and greatest ... Future is systems with Skylake, DDR4 and Windows 10 which are doing extremely well and allowing ASP appreciation even with a tepid backdrop."
    • B. Riley's Craig Ellis (Buy): "Positives are robust [PC division] ASPs, continued 10%+ yy growth in 40% of sales (DCG, IoT, Memory), in-line to better GM from high levels, accelerating mobile operating loss reduction, and a $400MM down-tick in capex. Negatives are moderately weaker than expected PC units and DCG’s enterprise weakness.”
    • Roth's Krishna Shankar (Buy): "We believe that new PC platforms such as Skylake on 14nm technology with new Windows10 PC upgrade cycle and continued strength in datacenter segment will likely drive 2016 results. Intel’s NVM memory business is observing robust growth driven by enterprise/datacenter SSD storage, while the embedded and IOT segment sees good growth due to trends such as [SDN] and NFV platforms on Intel architecture and evolving M2M and embedded Internet connectivity."
    • On the other hand, Morgan Stanley's Joseph Moore (Underweight) thinks some of Intel's PC ASP gains are temporary, fueled by a mix shift towards developed markets, low-end inventory burnoff, and stronger replacement rates on the high-end. Raymond James' Hans Mosesmann (Underperform) suspects DCG growth will be pressured going forward by price discounts meant to discourage clients from adopting ARM server CPUs.
    • On the earnings call (transcript), CFO Stacy Smith stated enterprise server demand has been weaker than expected, and cloud demand (partly coming at the expense of enterprise as cloud service adoption continues) stronger than expected. He also downplayed Intel's latest capex budget cut, suggesting the spending has simply been pushed out to 2016. "CapEx will be up some next year, but we will talk much more about that in November."
    • CEO Brian Krzanich echoed various analysts in asserting "there are signs that the PC market is beginning to stabilize." Smith noted the high-end Core i7 line (refreshed via Skylake) was a strong point in Q3. PC demand within emerging markets and "non-consumer segments" remained soft.
    • Prior Intel coverage
    | Oct. 14, 2015, 1:48 PM | 2 Comments
  • Oct. 13, 2015, 4:51 PM
    • Intel (NASDAQ:INTC) has cut its 2015 capex budget for the fourth time: It's now at $7.3B (+/- $500M), down from $7.7B in July and $8.7B in April, and below a 2014 level of $10.1B.
    • Gross margin: Q3 gross margin was 63%, +50 bps Q/Q and -200 bps Y/Y, and in-line with guidance. Q4 GM guidance is at 62% (+/- 2%). Higher ASPs lifted Q3 GM, while higher platform unit costs weighed. Higher unit costs and factory start-up costs are expected to weigh on Q4 GM, partly offset by lower write-offs.
    • PC/mobile CPUs: Client Computing Group revenue -7% Y/Y to $8.5B, thanks largely to a weak PC market. Op. profit fell 20% to $2.4B. Volumes +3% Q/Q and -19% Y/Y. ASPs +9% Q/Q and +15% Y/Y. Desktop volumes -15% Y/Y, notebooks -14%, tablets -39%; all three segments had higher ASPs.
    • Server CPUs: With Web/cloud demand and the Grantley Xeon CPU launch still acting as tailwinds, Data Center Group revenue rose 12% Y/Y to $4.1B. Op. profit rose 9% to $2.1B. Volumes +7% Q/Q and +6% Y/Y. ASPs +1% Q/Q and +6% Y/Y.
    • Other segments: IoT Group revenue +10% Y/Y to $581M; op. profit +4% to $151M. Software/services revenue flat at $556M; op. profit up over 3x to $102M. Other (NOR/NAND flash, devices, one-time costs, etc.) revenue +19% to $682M; op. loss of $621M.
    • Financials: $1B was spent on buybacks, up from $697M in Q2. Thanks to lower R&D spend, R&D/MG&A spend was flat Y/Y at $4.8B ($100M below expectations). The tax rate was 26.9%, 90 bps above expectations. Intel ended Q3 with $20.8B in cash/investments ($10.3B offshore), and $21.2B in debt.
    • INTC +0.3% after hours to $32.13.
    • Q3 results/Q4 guidance, PR (.pdf), CFO commentary (.pdf)
    | Oct. 13, 2015, 4:51 PM | 3 Comments
  • Oct. 13, 2015, 4:04 PM
    • Intel (NASDAQ:INTC): Q3 EPS of $0.64 beats by $0.05.
    • Revenue of $14.47B (-0.5% Y/Y) beats by $250M.
    • Expects Q4 revenue of $14.8B (+/- $500M) vs. a $14.83B consensus.
    • Shares +1% after hours.
    | Oct. 13, 2015, 4:04 PM | 24 Comments
  • Oct. 12, 2015, 5:35 PM
    | Oct. 12, 2015, 5:35 PM | 5 Comments
  • Jul. 15, 2015, 6:54 PM
    • On Intel's (NASDAQ:INTC) Q2 CC (webcast), CEO Brian Krzanich stated his company doesn't plan to launch its first 10nm CPU platform until the second half of 2017. The platform, previously codenamed Cannonlake and more recently referred to as Ice Lake, was expected to arrive by late 2016 or early 2017.
    • Krzanich: "The last two technology transitions have signaled that our cadence today is closer to 2½ years than two.” To hold users over between the its first 10nm chips and its 14nm Skylake CPUs (due later this year), Intel plans to roll out a 3rd-gen 14nm platform (codenamed Kaby Lake) in 2016. The disclosure coincides with a $1B 2015 capex budget cut.
    • On the bright side, Intel remains upbeat about server CPU division (DCG) sales - the company previously forecast a 15% CAGR for DCG through 2018 - and predicts Skylake and Windows 10 will drive a seasonal pickup in PC demand following a very rough Q1/Q2.
    • Intel is now up 1.7% AH, giving back a large chunk of the initial gains seen on account of its Q2 beat (aided on the bottom line by a low tax rate) and better-than-expected guidance.
    • Intel's results/guidance, details
    | Jul. 15, 2015, 6:54 PM | 20 Comments
Company Description
Intel Corp. designs, manufactures and sells computer components and related products. It also engages in the designing and manufacturing of computing and communication components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products. The company develops... More
Sector: Technology
Industry: Semiconductor - Broad Line
Country: United States