After the close, computer chip maker Intel (INTC) reported earnings that beat the street’s estimates by a wide margin. Intel announced Q1 earnings of $0.11 per share, which handily beat the Reuters estimate of $0.03 on $7.15 Billion in revenues.
Intel also suggested that the market for PC’s is bottoming out and that conditions may be starting to improve in the tech sector. Stacy Smith, Intel’s CFO said, “The quarter was better than we expected.”
However the stock is down more than -5% in after hours trading due to the lack of guidance for the upcoming quarter. Citing uncertainty in the chip market, the company declined to provide a range for revenues in the upcoming quarter. Although the company did estimate that revenues would be about even with the first quarter, which the WSJ estimates would mean an stronger second quarter than normal.
While INTC’s report did “beat the street,” it is important to remember that profits were down some 55% from the same period a year ago. However, cost cutting measures and improved demand helped the company’s results improve from the 90% decline seen in the fourth quarter.
So, like the economy, the rate of decline for Intel appears to be slowing, which is the first step toward recovery.
Intel
Intel
S&P 500
S&P 500
