Intel Beats Expectations, Posts $3B USD Profit
October 17, 2012 11:40 AM
comment(s) - last by
Ultrabook sales suffer, but Intel still manages to impress in a stale market
Intel Corp.'s (
) fiscal third quarter
a fair bit of optimism, despite a slowing personal computer market.
The world's largest PC chipmaker earned $3.0B USD on a revenue of $13.46B USD. The analyst consensus
were earnings of $2.8B USD on a revenue of $13.23B USD (43 analysts surveyed). That represents a surprise of 5.6 and 1.8 percent on the earnings and revenue side, respectively.
Intel continues to reward its investors via $1.1B USD in dividends and $1.2B USD in stock repurchases.
The core PC Client Group was down 8 percent on a year-to-year basis in revenue, but that was expected. While reviews of Intel's latest and greatest CPU --
the 22 nm
Core i[3,5,7] branded line
-- have generally been decent, PC sales as a whole have been depressed by a slowing global economy and currency concerns.
Intel's Ultrabooks -- a push that was supposed to drive up margins -- have been
largely a sales flop
, despite Intel's claims that 2012 would be the "
year of the Ultrabook
". Some consumers are certainly going for the slender, lightweight, powerful portables, but price has proved a key disincentive driving down sales.
As analysts predicted,
Ultrabooks' "premium" prices have suppressed sales.
[Image Source: HP]
The chipmaker estimates revenue of $13.5B +/- 0.5B USD. Intel also expects $11.3B USD in capital spending, most of which goes to Intel's industry-leading research and development efforts. Intel is racing to
fend off feisty competitors
like the coalition of chipmakers licensing ARM Holdings, Plc.'s (
) lightweight, power-efficient cores and instruction sets.
Those rivals mostly use third party fabs, which trail Intel in process technology. Thus Intel is in an ideal position, in a way, in that it has slack on the architectural front, assuming its
aggressive die shrinks
can yield superior power savings to the nodes that competitors are producing on.
The Santa Clara, California giant expects to pay an effective tax rate of 27 percent for the year of 2012 -- a total
significantly higher than some
top tech companies (the average for Fortune500 tech companies is around 16 percent [
FT [analyst estimates]
This article is over a month old, voting and posting comments is disabled
10/17/2012 4:44:26 PM
Pull ahead future sales to this quarter to make Wall Street happy and hope you can cover your arse next quarter. Well those days may be coming to an end with a tough world wide economic environment and closer scrutiny of corporate accounting procedures.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Sales Estimates Slashed for Ultrabooks for 2012 Due to Poor Adoption
October 2, 2012, 8:57 AM
Want an Intel-Based Windows 8 Tablet? Prepare to Pay up to $300 Extra, Says Lenovo
August 17, 2012, 6:18 PM
Fourteen New Intel Ivy Bridge Chips Announced
May 31, 2012, 11:52 AM
Google: Profit up 60 Percent, War-Chest at $49.3B USD, Stock Split 2-to-1
April 13, 2012, 7:01 PM
CES 2012: Intel -- 2012 is the Year of the Ultrabook
January 9, 2012, 12:05 PM
"Prepare to be Punished": Microsoft is Killing OneDrive With Cuts, Blames Users
November 3, 2015, 8:23 PM
Apple's New "Magic" Peripheral Line Packs High Tech, High Prices
October 13, 2015, 9:39 PM
Samsung Adds 2 TB 850 EVO, PRO SSDs for $800, $1000
July 7, 2015, 4:23 PM
Seagate Senior Researcher: Heat Can Kill Data on Stored SSDs
May 13, 2015, 2:49 PM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information