Intel Corporation (Nasdaq: INTC) is scheduled to report its first-quarter 2011 earnings on Tuesday, April 19. For the previous two quarters ending December 31, 2010, INTC’s reported earnings per share has exceeded analysts’ consensus estimate between the margins of 4 percent and 11 percent.
Company Description: Intel is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Intel Corporation was incorporated in California in 1968 and reincorporated in Delaware in 1989. It is the world's largest semiconductor chip maker, based on revenue. They develop advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. INTC designs and manufactures computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components.
Intel Corporation reported record financial earnings for 2010, full-year revenue of $43.6 billion, operating income of $15.9 billion, net income of $11.7 billion, and EPS of $2.05. The company generated approximately $16.7 billion in cash from operations, paid cash dividends of $3.5 billion, and used $1.5 billion to repurchase 70 million shares of common stock. For the fourth-quarter, Intel posted revenue of $11.5 billion. The company reported fourth-quarter operating income of $4.3 billion, net income of $3.4 billion, and EPS of 59 cents. Fourth-quarter revenue, operating income, net income, and EPS were also all records.
During the quarter, Intel completed the $7.68 billion all-cash, acquisition of software company McAfee. Recently, Intel has acquired SySDSoft, an Egypt-based software company that builds IP systems and RF/analogue circuits for mobile platforms. The acquisition supports Intel's efforts to expand a wireless product portfolio.
On March 28, the company announced the production of its third-generation solid-state drive (SSD) the Intel® Solid-State Drive 320 Series. Based on its industry-leading 25-nanometer NAND flash memory, the Intel SSD 320 replaces and builds on its Intel® X25-M SATA SSD. The Intel SSD 320 Series comes in 40 gigabyte (GB), 80GB, 120GB, 160GB and new higher capacity 300GB and 600GB versions. It uses the 3 gigabit-per-second (3gbps) SATA II interface to support an SSD upgrade for the more than 1 billion SATA II PCs installed throughout the world.
The board of directors has declared 18.12 cents per share quarterly dividend on the company's common stock. The dividend will be payable June 1 to stockholders of record on May 7.
The analyst revenue estimates for the first quarter are $11.63 billion, compared to the previous year’s quarter sales of $10.30 billion. The estimate is 12.90 percent higher on year on year basis. The average estimated EPS for the first quarter 2011 is $0.47 against $0.43, a year ago EPS. In the last 52-weeks, the stock has been trading between the range of $17.60 and $24.37.
Actual earnings for Intel have been beating the Wall Street consensus by a few cents each quarter in recent quarters.
