Thursday, January 26, 2012

Intel Reports Near-Record Quarter: Earnings Down QoQ, Up YoY

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Intel Reports Near-Record Quarter: Earnings Down QoQ, Up YoY


Intel Summary Q4 2011 Intel reported near-record Q4 financial performance, after the record Q3. Intel had alarmed investors on December 12, 2011 with lowered total revenues and gross profit margin estimates. "2011 was an exceptional year for Intel,” said Paul Otellini, Intel President and CEO. "With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we’re excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets." Investor confidence is strengthened by the latest financial results, after being deflated somewhat by Q2 2011 and the December 2011 lowered outlook. Intel's total revenues Q1 2012 outlook is flat YoY, compared to Q1 2011. However, gross profit margin is +2% higher YoY which should increase net income and EPS. Financial position continues strong.


Intel Income Statement Q4 2011 Intel reported near-record total revenues of $13.89 billion, near-record net income of $3.36 billion, and near-record earnings per share of $0.64. From the prior record quarter Q3 2011, total revenues were -2.43%, net income -3.11%, and earnings per share -1.54%. From the prior year Q4 2010, these were +21.21%, +5.66%, and +14.29%, respectively. Gross margin, operating margin, and net margin are within the recent historical range at 64.46%, 33.12%, and 24.20%, respectively. The operating expense ratio has been stable and is currently 31.35%.


Intel Balance Sheet Q4 2011 Intel continues liquid and well capitalized. Total assets have reached an all-time high of $71.12 billion. The current ratio decreased QoQ and YoY to 36.38%, which continues adequate. Intel has $14.84 billion in short-term cash, cash equivalents, and marketable securities. Capital to assets slightly decreased QoQ and significantly YoY to 64.56%. The YoY decrease was due to an increase in debt. The debt ratio of 10.31% was flat QoQ but up significantly YoY. Return on assets of 19.23% continues at recent levels and above the historical average.


Intel Business Outlook (GAAP, unless otherwise stated)
Q1 2012
• Revenue: $12.8 billion, plus or minus $500 million.
• Gross Margin: 63% and 64% Non-GAAP, both plus or minus a couple percentage points.
Full Year 2012
• Gross Margin: 64% and 65% Non-GAAP, both plus or minus a couple percentage points.


Intel Performance by the Quarters (Charts) Intel Earnings Per Share Current Earnings per Share of $0.64 are -1.54% QoQ, +14.29% YoY, and just below the prior quarter record high. The chart average EPS is $0.38.




Intel Total Revenues, Operating Income, and Net Income Current Total Revenues of $13.89 are -2.43% QoQ, +21.21% YoY, and just below the prior quarter record high. Current Operating Income of $4.60 billion is just below the prior quarter record high. Current Net Income of $3.36 billion is -3.11% QoQ, +5.66% YoY, and just below the prior quarter record high. The chart averages for TR, OI, and NI are $10.80 billion, $3.10 billion, and $2.22 billion, respectively.

   


Intel Gross Margin, Operating Margin, and Net Margin Current Gross Margin of 64.46% is a 4-quarter high. Current Operating Margin of 33.12% dipped QoQ and YoY. Current Net Margin of 24.20% decreased QoQ and YoY. The chart averages for GM, OM, and NM are 60.13%, 27.25%, and 12.65%, respectively.

 


Intel Return on Assets Current Return on Assets of 19.23% is historically strong and slightly decreased QoQ and YoY. The ROA chart average is 14.12%.

 


Intel Regional Revenues Asia Pacific at $8.02 billion and 57.74% of total revenues is the primary driver of sales growth. Americas at $2.66 billion and 19.13% has decreased. Europe at $1.93 billion and 13.91% increased. Japan at $1.28 and 9.21% slightly decreased.

 


Intel Growth Rates YoY Current Total Revenues Growth YoY of +21.21% is historically about average and the 9th consecutive quarter of growth. Current Earnings per Share Growth YoY of +14.29% is historically below average but the 6th consecutive quarter of growth. The chart averages for TRG and EPSG are +20.31% and +28.83%, respectively.

 


Intel Operating Expense Ratio Current Operating Expense Ratio of 31.35% is historically below average. The OER has been stable for the past 8 quarters, which is encouraging for investors. The OER chart average is 33.21%.

 


Intel Reports Record Year SANTA CLARA, Calif., Jan. 19, 2012 - Intel Corporation today reported full-year revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion and EPS of $2.39 -- all records. The company generated approximately $21 billion in cash from operations, paid dividends of $4.1 billion and used $14.1 billion to repurchase 642 million shares of stock. For the fourth quarter, Intel posted revenue of $13.9 billion, operating income of $4.6 billion, net income of $3.4 billion and EPS of 64 cents. The company generated approximately $6.6 billion in cash from operations, paid dividends of $1.1 billion and used $4.1 billion to repurchase 174 million shares of stock.

"2011 was an exceptional year for Intel," said Paul Otellini, Intel president and CEO. "With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we're excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets."

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