And a Chipmaker Shall Lead Us…

Intel (INTC) ripped the cover off the ball with their latest earnings report.  And we’re not talking about cost-cutting:

From Reuters:
Intel projected third-quarter revenue at $8.1 billion to $8.9 billion, compared with analysts’ average forecast of $7.8 billion, according to Reuters Estimates.

They beat on revenues and they are raising revenue guidance.  When was the last time you heard something like that?  The ability of a company that sells into every economic sector and geographic region to grow the top line in this environment is meaningful.

CFO Stacy Smith said fourth-quarter gross margins could scale the high end of a “normal” range — which Intel defines as 50 to 60 percent — due partly to declining production costs for new generations of chips and other factors.

Oh yeah, they are also expanding their gross margins.  This is the type of report that reminds you why you watch and invest in stocks in the first place.

Intel’s beat and raise matters.  It is a Dow component, a heavy weighting in the NASDAQ 100 and a chunk of the S&P 500.  Their chips go to consumers, governments and businesses around the world.

I don’t own any Intel shares for myself or customers and my commentary here is not meant as an endorsement of the stock.  That said, I am inspired by the strength of this report and hopeful that we can get some other surprises this earnings season against the awful employment backdrop.

Rock on, Intel!  Well Done.

Sources: 

Intel Trumps Forecasts (Reuters)

Full Disclosure:  I do not currently own shares of Intel.  My commentary above is not meant as investment advice and should not be construed as an invitation to buy or sell any securities.  For a full disclaimer, please see my Terms & Conditions page.

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