INTC: Look Ahead to March 2011 Quarterly Results

This post describes our model of Intel's (NASDAQ: INTC) Income Statement for fiscal 2011's first quarter, which will end on 26 March 2011.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Intel and the business environment in which it is currently operating.

Intel Corporation is a prominent manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  The company is included in the Dow Jones Industrial Average and the S&P 500.  It currently has a market value of approximately $115 billion on a fully diluted basis.

Fortune lists Intel as the most admired semiconductor company.

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INTC: Financial Gauge Analysis for the December 2010 Quarter

We have updated the various financial metrics we use to analyze Intel's (NASDAQ: INTC) Cash Management, Growth, Profitability and Value.  This post reports on the metrics and the associated financial gauge scores. 

The metrics were calculated using data from Intel's current and historical financial statements, including those in the new 10-K for fiscal 2010.

When Intel reported its results for the fourth quarter of fiscal 2010, the company announced earnings of $3.388 billion ($0.59 per diluted share).  Later, after a flaw was discovered in a new chipset, Intel added a $300+ million charge ($208 million after tax) to its Cost of Goods Sold.  This change reduced fourth-quarter earnings to $3.180 billion ($0.56 per share).

A previous GCFR article examined in some detail Intel's Income Statement for the December quarter, using the originally reported data.  The retroactive reinstatement of U.S. R&D tax credits helped boost earnings above our estimate.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel is the most prominent manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  The company is included in the Dow Jones Industrial Average and the S&P 500.  It has a market value of about $125 billion.

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INTC: Income Statement Analysis for the December 2010 Quarter

Intel (NASDAQ: INTC) earned a record $0.59 per diluted share on a GAAP basis in the December-ending fourth quarter of fiscal 2010, up 47 percent from $0.40 in the same three months of 2009.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.07 more than our $0.52 EPS estimate, with a substantial amount of the difference attributable to legislation passed in late 2009 that reinstated and extended certain tax credits.

The principal sources for this income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the ensuing conference call (transcript available from Seeking Alpha).

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

Intel is included in the Dow Jones Industrial Average and the S&P 500.  It has a market value of about $120 billion.

The company's business is organized around nine product groups.  The two largest groups are PC Client and Data Center.  The PC Client Group sells microprocessors and related products for desktop, notebook, and netbook computers.  It also markets wireless connectivity products.  PC Client was responsible for $26.2 billion of Revenue in 2009, nearly 75 percent of Intel's total Revenue.

The Data Center Group sells microprocessors and related products for servers, workstations, and storage computing equipment.  It also has products for wired network connectivity.  The Data Center Group had Revenue of $6.45 billion in 2009, 18 percent of the company's total sales.

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INTC: Look Ahead to December 2010 Quarterly Results

This post describes our model of Intel Corporation's (NASDAQ: INTC) Income Statement for fiscal 2010's fourth quarter, which will end on 25 December 2010.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Intel and the business environment in which it is currently operating.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

Intel is included in the Dow Jones Industrial Average and the S&P 500.  It has a market capitalization of about $120 billion.

The company's business is organized around nine product groups.  The two largest groups are PC Client and Data Center.  The PC Client Group sells microprocessors and related products for desktop, notebook, and netbook computers.  It also markets wireless connectivity products.  PC Client was responsible for $26.2 billion of Revenue in 2009, nearly 75 percent of Intel's total Revenue.

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INTC: Financial Gauge Analysis for the September 2010 Quarter

Intel (NASDAQ: INTC) earned $0.52 per diluted share on a GAAP basis in the 25 September-ending third quarter of fiscal 2010, up 57 percent from $0.33 in the same three months of last year.

A previous article examined in some detail Intel's Income Statement for the September quarter.  Reported earnings were $0.02 more than our $0.50 EPS estimate.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Intel and the associated financial gauge scores.  The metrics were calculated using data from Intel's current and historical financial statements, including those in the 10-Q filed on 2 November 2010.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel Corporation is the foremost manufacturer of integrated circuits for computers.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

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INTC: Income Statement Analysis for the September 2010 Quarter

Intel (NASDAQ: INTC) earned $0.52 per diluted share on a GAAP basis in fiscal 2010's third quarter, which ended on 25 September.  Earnings per share were 57 percent more than the $0.33 Intel made in the same quarter of 2009.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.02 greater than the $0.50 we had forecast.

The principal sources for the income statement analysis were the earnings announcement and the CFO's commentary [pdf].

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel Corporation is the foremost manufacturer of integrated circuits for computers.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

The company's business is organized around nine product groups.  The two largest groups are PC Client and Data Center.  The PC Client Group sells microprocessors and related products for desktop, notebook, and netbook computers.  It also markets wireless connectivity products.  PC Client was responsible for $26.2 billion of Revenue in 2009, nearly 75 percent of Intel's total Revenue.

On 19 August 2010, Intel announced it would acquire McAfee (NYSE:MFE), a maker of security software, for $7.7 billion.  Intel management stated that security has joined "energy-efficient performance" and "Internet conductivity" as the three "pillars" that support computing today. 

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INTC: Look Ahead to September 2010 Quarterly Results

This post describes our model of Intel Corporation's (NASDAQ: INTC) Income Statement for the quarter that will end on 25 September 2010.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Intel and the business environment in which it is currently operating.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

Intel is included in the Dow Jones Industrial Average and the S&P 500.  It has a market capitalization of about $100 billion.

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INTC: Financial Gauge Analysis for the June 2010 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.51 per diluted share in fiscal 2010's second quarter. 

In our earlier review of Intel's Income Statement, we compared the actual results to our "look-ahead" estimates.  Reported earnings were $0.09 better than the $0.42 per share we had forecast for the second quarter.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Intel and the associated financial gauge scores.  The metrics were calculated using data from Intel's current and historical financial statements, including the latest 10-Q.

Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  The company has nine product groups, with PC Client and Data Center being the two largest.  Additional background information about Intel and the business environment in which it is currently operating can be found in the look-ahead.

In summary, Intel's latest quarterly results produced the following changes to the gauge scores:

• Cash Management: 13 of 25 (down from 20 in March)
• Growth: 24 of 25 (unchanged)
• Profitability: 22 of 25 (up from 20)
• Value: 16 of 25 (up from 4)

• Overall: 72 of 100 (up from 55)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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INTC: Income Statement Analysis for the June 2010 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.51 per diluted share (a record amount) on a GAAP basis in fiscal 2010's second quarter, which ended on 26 June.  In the  same quarter of 2009, Intel reported a $0.07 loss per share, in large part because the company paid a $1.5 billion fine for European antitrust violations.

Excluding last year's fine, second quarter earnings rose from $0.18 to $0.51 per share.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  The reported EPS amount was $0.09 more than the $0.42 we had forecast for the second quarter.

The principal sources for the income statement analysis were the earnings announcement and the CFO's commentary [pdf].

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  The company has nine product groups, with PC Client and Data Center being the two largest.  Additional background information about Intel and the business environment in which it is currently operating can be found in the look-ahead.

Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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INTC: Look Ahead to June 2010 Quarterly Results

This post describes our model of Intel Corporation's (NASDAQ: INTC) Income Statement for the quarter that will end on 26 June 2010.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Intel and the business environment in which it is currently operating.

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products. 

In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

According to Intel's last 10-K, Hewlett Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) accounted for 21 percent and 17 percent, respectively, of Intel's net revenue in 2009.

Intel is included in the Dow Jones Industrial Average and the S&P 500.  It has a market capitalization of about $120 billion.

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INTC: Financial Gauge Analysis for the March 2010 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.43 per diluted share in the first quarter of fiscal 2010.  Intel's income was nearly four times the $0.11 per share it made in 2009's first quarter.

In our earlier review of Intel's Income Statement, we compared the actual results to our "look-ahead" estimates. 

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Intel and the associated financial gauge scores.  The metrics were calculated using data from Intel's current and historical financial statements, including the latest 10-Q.


Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  Additional background information about Intel and the business environment in which it is currently operating can be found in the look-ahead.

In summary, Intel's latest quarterly results produced the following changes to the gauge scores:

• Cash Management: 20 of 25 (up from 17 in December)
• Growth: 24 of 25 (up from 5)
• Profitability: 20 of 25 (up from 12)
• Value: 4 of 25 (up from 1)

• Overall: 55 of 100 (up from 32)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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INTC: Income Statement Analysis for the March 2010 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.43 per diluted share in the first quarter of fiscal 2010, which ended on 27 March.  Earnings per share were nearly four times the $0.11 Intel made in the first quarter of 2009.

The EPS on a non-GAAP basis was also $0.43.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Our EPS target was $0.39 per share, $0.04 less than the reported and non-GAAP amounts.

The principal sources for the income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the conference call transcript made available by Seeking Alpha.

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.


Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products   Additional background information about Intel and the business environment in which it is currently operating can be found in the look-ahead.

Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

Read the rest of this article

INTC: Look Ahead to March 2010 Quarterly Results

This post describes our model of Intel Corporation's (NASDAQ: INTC) Income Statement for the quarter that will end on 27 March 2010.  GCFR estimates are derived from guidance provided by company management, when available, and the company's historical financial results.

The intent of our look-ahead exercises is to produce a baseline for identifying surprises, positive or negative, in the reported data. 


First, we present some background information about Intel and the business environment in which it is currently operating.

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INTC: Financial Gauge Analysis for the December 2009 Quarter

Intel (NASDAQ: INTC) earned $0.40 per diluted share in the fourth quarter of 2009, which ended on 26 December, up from $0.04 in the same quarter of the previous year. 

We have already reported on the Income Statement for the quarter and compared the figures on each line to our "look-ahead" estimates.  We subsequently updated the Cash Management, Growth, Profitability and Value metrics for Intel.

This post reports on the metrics and the associated financial gauge scores.  The metrics were calculated using the financial statements in the earnings announcement.

Because the announcement did not include a complete Cash Flow statement, we had to estimate a few values to compute the gauge scores.  We will make any necessary adjustments after Intel files a complete 10-K report with the SEC.

Intel Corporation is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  Some background information about Intel and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

In summary, Intel's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 17 of 25 (up from 7 in September)
  
• Growth: 6 of 25 (up from 1)
• Profitability: 13 of 25 (up from 9)
• Value: 1 of 25 (up from 0)

• Overall: 32 of 100 (down from 17)

Although 32 points is not a particularly wonderful score, the increase from the previous quarter could be more significant. 

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INTC: Income Statement Analysis for the December 2009 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.40 per diluted share in the fourth quarter of 2009, which ended on 26 December, up from $0.04 in the same quarter of the previous year.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Our target for Net Income in the latest quarter was $0.29 per share, $0.11 less than the reported amount.

Our principal sources for the income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the post-release conference call transcript available from Seeking Alpha.

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

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INTC: Look Ahead to December 2009 Quarterly Results

Intel Corporation (NASDAQ: INTC) earned $0.33 per share in the third quarter of 2009, compared to Net Income of $0.35 last year and our target of $0.27.  Revenue was 8.1 percent less than in the same period of 2008, but Revenue increased from its second quarter 2009 value by a healthy 17 percent.

In October, we examined the Income Statement for the third quarter and compared the entries on each line to our "look-ahead" estimates.  We followed this up with financial gauge analyses.

We have now modeled Intel's Income Statement for the quarter that will end on 26 December 2009.  The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data that the company will announce on 14 January 2010.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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INTC: Financial Gauge Analysis (Updated) for the September 2009 Quarter

We previously posted Intel Corporation's (NASDAQ: INTC) preliminary financial gauge scores for the third quarter of 2009.  To obtain those results, the financial statements in Intel's latest earnings announcement were used to calculate Cash Management, Growth, Profitability and Value metrics.

Intel later filed a more detailed 10-Q report, which included an updated Cash Flow statement.  We have now adjusted the metrics and scores to take advantage of the latest information.

The net effect of the changes was to trim two points each, compared to the preliminary estimates, from the Profitability and Overall gauge scores:

• Cash Management: 13 of 25 (unchanged from June)
  
• Growth: 1 of 25 (up from 0)
• Profitability: 9 of 25 (down from 10) -- initial estimate was 11
  
• Value: 0 of 25 (down from 3)

• Overall: 22 of 100 (down from 27) -- initial estimate was 24
  

For the record, current and historical figures for the financial metrics that determine the gauge scores are listed below.  Numbers that changed from the preliminary analysis are highlighted.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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INTC: Financial Gauge Analysis for the September 2009 Quarter

In a previous article, we examined Intel Corporation's (NASDAQ: INTC) Income Statement for the third quarter of 2009 and compared the figures on each line to our "look-ahead" estimates.  Intel earned $0.33 per share in the quarter, down from $0.35 last year.

Using the financial statements in Intel's earnings announcement, we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the results and the associated financial gauge scores. 

Some background information about Intel and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

In summary, Intel's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 13 of 25 (unchanged from June)
  
• Growth: 1 of 25 (up from 0)
• Profitability: 11 of 25 (up from 10)
• Value: 0 of 25 (down from 3)

• Overall: 24 of 100 (down from 27)

Because the press release did not include a complete Cash Flow statement, we had to estimate certain values.  We will adjust the gauge scores after Intel files a 10-Q report with the SEC.

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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INTC: Income Statement Analysis for the September 2009 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.33 per share in the third quarter of 2009, compared to Net Income of $0.35 last year and our overly pessimistic target of $0.27.  This post examines the Income Statement for the quarter, and it compares the entries on each line to our "look-ahead" estimates. 

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

Some background information about Intel and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

Our principal sources for the income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the Seeking Alpha conference call transcript.

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INTC: Look Ahead to September 2009 Quarterly Results

The GCFR Overall Gauge of Intel Corporation (NASDAQ: INTC) slipped from 30 to 27 of the 100 possible points in the second quarter of 2009, which ended 27 June 2009.  Our initial and updated analysis reports explained in some detail how the score was attained.

Second-quarter Revenue exceeded expectations by rebounding 12.3 percent above the first quarter's disappointing result. However, Revenue was still 15 percent less than in last year's second quarter.  A bright spot was robust sales of the low-power Atom™ microprocessors and associated components used in netbooks and mobile devices.

Intel lost $0.07 per share in the second quarter, compared to earnings of $0.28 in the same period of 2008.  If the European Commission had not fined Intel $1.447 billion for anti-competitive actions, the company would have earned $0.18 per share.


We have now modeled Intel's Income Statement for the quarter that will end on 26 September 2009.  The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data the company will announce on 13 October.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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