/// Intel Results Beat The Street As It Cuts Full Year Outlook
Intel’s earnings just crossed the wires and the headline is that it beat the street consensus by 2 cents, reporting per-share earnings of 54 cents on revenue of $13.5 billion. The revenue number is a little light, as analysts had expected sales of $13.6 billion. Earnings excluding items were 57 cents a share. For the third quarter outlook, Intel says it sees sales of $14.3 billion give or take a half billion of 63 percent or 64 percent on a non-GAAP basis. The revenue projection is $300 million lighter than the consensus and so shareholders initially panicked and sent Intel shares down by 1 percent in after-hours trading, though it has since recovered most of that. Intel also cut its view on the full fiscal year, saying it expects to grow year-on-year in the range of 3 percent to 5 percent, down from a “high single digit” expectation given previously. The world economy has finally whacked mighty Intel. As CEO Paul Otellini put it: “As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment.” Here’s Intel’s full announcement: Intel Reports Second-Quarter Revenue of $13.5 Billion SANTA CLARA, Calif., July 17, 2012 – Intel Corporation today reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $2.8 billion and EPS of $0.54. The company generated approximately $4.7 billion in cash from operations, paid dividends of $1.1 billion and used $1.1 billion to repurchase stock. “The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones,” said Paul Otellini, Intel president and CEO. “As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we’re making in our product and manufacturing areas, we are well positioned for this year and beyond.” Business Outlook Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after July 17. Q3 2012 (GAAP, unless otherwise stated) · Revenue: $14.3 billion, plus or minus $500 million.