By Eldon Mast, on May 12th, 2010
Back in July 2009, Intel asserted that the young recovery of 2009 would be anything but lackluster.
On Tuesday, the leaders of the chip giant re-asserted their claims for 2010 and beyond.
Paul Otellini, Intel’s CEO, told analysts that its earnings per share and revenue should grow at an average annual rate in the “low double-digits” over the next few years. “We are on top of a growth engine,” Mr. Otellini said.
You may remember that last year — in the face of a global financial crisis — Intel chose to spend $7B in new U.S R&D facilities, while competition retrenched in the face of credit woes. Intel can now exploit those technological advantages and continue to deliver new products with much higher performance and lower power consumption. Otellini stated that those advances now drive the company’s products into a plethora of new devices such as cellphones, digital TVs, car electronics, cameras, and other consumer electronics.
“Intel has a unique set of attributes that no one can replicate,” Mr. Otellini said. “This stuff gets harder to do and we are going to get better at it.”
For Intel, it looks like 2010 (and perhaps 2011) will also be anything but lackluster.
By Eldon Mast, on January 15th, 2010
Intel posted a fourth-quarter net income of $2.3 billion, up 875% over its report last year at this time. Record revenues came in at $10.6 billion, up 28% year over year. Further the company yet again boosted its revenue guidance saying it expects first quarter revenue of $9.30 billion to $10.10 billion. The consensus estimate had been for revenue of $9.26 billion for the quarter ending March 31, 2010.
The impressive swing in net income was about 10 times greater than the $234 million (4 cents per share) that the firm reported last year on January 15.
We’ve continued to watch in amazement as Intel seemed completely unphased by the economic downturn of 2008 and 2009:
1. January 2009: Intel beats its Q4 2008 estimates amidst negative headlines everywhere else.
2. April 2009: Intel declares, “We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns.” In the first-quarter, the firm’s profit far exceeded analyst views.
3. July 2009: Still swimming upstream, Intel posts its largest quarterly sequential increase in sales since 1988, further boosts its guidance for Q3 in the face of naysayers calling for lackluster Q3 growth.
4. Oct 2009: Cisco joins Intel in declaring that “Recovery Is Gaining Momentum.”
And just prior to yesterday’s Intel announcement you’ll remember that analyst firm IDC declared that in Q4 2009, the U.S. PC “market exploded higher.“
By Eldon Mast, on July 15th, 2009
Many economists have claimed that as recovery begins in the current economic cycle that the rebound will be lifeless.
However several economists and indices argue that many times deeper than average recessions are followed by a significant economic rebounds.
As this current earnings seasons begins, Intel agrees. On Tuesday the technology leader boosted its formal guidance for revenue in this quarter by $1B beyond consensus estimates. The strong third quarter prediction follows a 12 percent jump in second-quarter sales from Q1 results. It was Intel’s largest quarterly sequential increase in sales since 1988.
“It was a superb quarter for them.” said Patrick Wang, a New York-based analyst at Wedbush Morgan Securities. “Intel’s results reflect the stabilizing environment.”
Intel’s stock was up significantly in after hours trading. US stock futures also jumped late Tuesday and trading in Asian markets rallied strongly early Wednesday morning.
With initial unemployment claims at their lowest level since January, investors positioning capital for commercial real estate buys, and firms like Alcoa and Intel shattering earnings and revenue estimates, it appears that this recovery could be anything but lusterless.
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