Intel Q1 Preview: Market Expects In-Line Results, Solid Outlook

Intel (INTC) releases Q1 earnings Tuesday after the bell (Conference call at 5:30/2:30). The company is expected to meet its own reduced expectations.

Intel is down 20% since the Q4 release, after a worldwide glut of NAND flash memory chips (used inside cameras and other portable devices) knocked down average selling prices and forced the company to revise its gross margin expectations down from 56% to 54%.

Analyst channel checks suggest that the problem was limited to NAND sales and that PC and mobile demand remains solid. Analysts also believe that the AMD blow-up allowed Intel to gain share, especially at the high-end of the market. The company’s forward guidance and commentary with regard to the macro-economic environment will obviously be critical.

Key metrics:

  • Revenue: $9.63 billion,
  • Gross Margin: 54% (53%-55% range)
  • EPS: $0.25
  • Outlook: June: $9.3 billion / $0.28 2008: $39.8 billion / $1.29 2009: $42.7 / $1.53
  • June: $9.3 billion / $0.28
  • 2008: $39.8 billion / $1.29
  • 2009: $42.7 / $1.53

Our Intel Financial Analysis Spreadsheet is here.

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