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Semiconductor industry

Intel Surpasses Earnings Expectations, Crude Oil Dips on Inventory Jump

Strategic Insights

— 1 min read

Intel's fiscal fourth-quarter revenue reached $10.6 billion, a 13% sequential increase, with a record gross margin of 65% and operating income up $958 million year over year. Intel's earnings per share (EPS) of 40 cents soundly beat the Zacks Consensus Estimate of 34 cents. The company's strong performance is expected to continue in the first quarter 2010, with gross margin estimated to be between 59-63% and revenues in the $9.4-10.1 billion range.

Key Takeaways:

  • Intel's fiscal fourth-quarter revenue reached $10.6 billion, a 13% sequential increase.
  • The company's gross margin hit a record 65%, with operating income up $958 million year over year.
  • Intel's EPS of 40 cents beat the Zacks Consensus Estimate of 34 cents.
  • The company's strong performance is expected to continue in the first quarter 2010, with gross margin estimated to be between 59-63% and revenues in the $9.4-10.1 billion range.
  • Refining margins are expected to remain poor due to weak demand and high fuel supply inventories.
  • Sunoco Inc. (NYSE: SUN), Tesoro Corp. (NYSE: TSO), Valero Energy Corp. (NYSE: VLO), and Western Refining Inc. (NYSE: WNR) are expected to be negatively impacted by the poor refining environment.
  • Zacks Equity Research provides continuous coverage of 1,150 publicly traded stocks, with analysts organized by industry to provide in-depth insights.

Statistics:

  • Intel's fiscal fourth-quarter revenue reached $10.6 billion.
  • The company's gross margin hit a record 65%.
  • Operating income increased by $958 million year over year.
  • Intel's EPS of 40 cents beat the Zacks Consensus Estimate of 34 cents.
  • Refining margins are expected to remain poor due to weak demand and high fuel supply inventories.
  • Crude oil prices have dipped below $80 a barrel, the lowest level since the end of 2009.
  • The Energy Information Administration (EIA) reported a larger-than-anticipated buildup in crude and fuel supplies.

Sources:

  • Zacks Equity Research: [http://www.zacks.com/](http://www.zacks.com/)
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