Intel Plummets on Q4 Results (INTC)

Includes: AMD, INTC

Intel (INTC) shares fell 9% in after-market trading Tuesday after the company published disappointing Q4 results. According to management, lower than expected desktop processor unit shipments and prices were the main source of the revenue shortfall. Additional details can be found in Intel's press release. Seeking Alpha has published a full transcript of Intel's conference call.

Key results from Intel's quarter:

  • Revenue: $10.2 billion, down from the company's updated forecast last month of $10.4 billion to $10.6 billion, and analyst estimates of $10.56 billion.
  • Net Income: $2.5 billion, up from $2.1 billion in Q4 04.
  • EPS: 40 cents, compared with 33 cents in Q4 04, but falling short of analyst estimates of 43 cents.
  • Gross Margin: 61.8%, lower than the company's forecast of 63%, primarily due to revenue shortfall.
  • Product Trends: Higher total microprocessor units were higher with a lower ASP. Higher chipset units, flash units and motherboard units but lower sales of application processor units for cell phones and PDAs.
  • In a call with analysts, Intel CFO Andy Bryant said that he believes Intel may have lost a point in overall market share to AMD in the fourth quarter; AMD is scheduled to publish its quarterly results today. Seeking Alpha will post AMD's conference call transcript here tomorrow.

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    • Full transcripts of Intel's Q3 and Q4 conference calls