Intel Q3 profit (-31%), revenue both slip, but beat forecast

Posted Oct 17th 2006 4:56PM by Sarah Gilbert
Filed under: After the Bell, Earnings Reports, Bad News, Intel (INTC)

The investors have a little to cheer about in today's Q3 2006 earnings report from Intel Corp. (NASDAQ:INTC). Competitor International Business Machines Corp. (NYSE:IBM) is up sharply in a gorgeous third quarter, but Intel shows a nasty slide everywhere from net earnings -- at 22 cents a share, down 31% from third quarter 2005 -- to revenue, which at $8.7 billion is down a whopping 12% from the year-ago quarter. [The Wall Street Journal has 35% down; I'm not sure which math they're using, but the press release and my handy calculator both show 31%]

Despite the negative numbers, president and CEO Paul Otellini says he is "pleased" thanks to "industry acclaim." As these numbers are better than expected, not all's bad. Also, he's happy about the "record mobile and server processor shipments." Update: Investors are actually quite pleased, as well, and the stock is up in after hours trading, to $21.39 from a close at $20.90.

We'll be liveblogging the earnings webcast at 5:30 Eastern / 2:30 Pacific.

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Reader Comments (Page 1 of 1)

10-17-2006 @ 7:27PM

Lowell Grant said...

Intel will be the main winner when MSFT finally releases Vista in the next few months. The death of the PC is greatly exagerated and Vista will sell 10's of millions of computers in the next year. 75% of them will have Intel chips. Even if the stock "only" goes to 30, that's about 40% from here and what is the downside risk? Up 8, down 2? I'll take that bet, in fact I just did x 1,000.