Intel's second-quarter earnings report was largely in line, as the world's largest chipmaker reported earnings of 39 cents a share on $12.81 billion in revenue. Gross margins came in at 58%, up 2% sequentially, but down 5% year-over-year. Analysts surveyed by Thomson Reuters expected Intel to earn 39 cents a share on $12.896 billion in revenue.
However, for the third-quarter, new CEO Brian Krzanich reset market expectations. Intel said it expects revenue of $13.5 billion, plus or minus $500 million. Gross margins will be approximately 61%, plus or minus a couple of percentage points.
Deutsche Bank analyst Ross Seymore notes that Intel's new leadership team is resetting the company's growth trajectory, but also is also showing spending restraint, something Wall Street may like down the line. The company also lowered its full-year capital spending plan. It now expects to spend $11 billion, plus or minus $500 million, down from a previous view of $12 billion."While this
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts