NEW YORK (TheStreet) -- You never get a second chance to make a first impression. Nowhere is this more true than in the stock market. Once a high-flyer falls out of favor with analysts, it's hard to shed the "has-been" label.
Although Intel (INTC) didn't have an exceptionally strong first quarter, I was nonetheless surprised by the Street's apathy. Very few investors seem to believe Intel deserves to be owned on the basis of the company's weak mobile prospects.
I won't disagree that rivals Qualcomm (QCOM) and Broadcom (BRCM) have substantial leads in the realm of mobile. Intel's results showed meaningful progress. As is often the case, these things take a while to sink in. The Street will soon realize its mistake. And astute investors would be wise to buy up these shares now, trading at a considerable discount to fair value.
Intel's results were somewhat mixed. But there were more positives than negatives. The chip giant reported revenues of $12.76 billion, just shy of estimates of $12.8 billion. But more impressive than a revenue beat, management expanded gross margin to 59.75%, beating the midpoint of its forecast of 59%.
Intel also reported restructuring and asset impairment charges of $137 million. This is $63 million lower than initially forecast. Likewise, the company posted a $160 million from impact of equity investments and interest. This figure also beat forecasts of $25 million. All of this culminated in earnings per share of 38 cents, which beat Street estimates by a penny.