Wow Intel had a great quarter judging from these numbers they just posted.
The Santa Clara, Calif. chipmaker posted an adjusted profit of $1 billion, or 18 cents a share. That is down from the 28 cents in the year-ago period but more than twice the 8-cent pro forma profit target analysts had for the stock, according to Yahoo! Finance.
I think that this knowledge will be the most important thing to seeing the stock go up tomorrow
Gross margins swelled 5 percentage points to 50.8% in the quarter as Intel managed to balance its high costs with lower sales levels. Looking ahead, Intel says it expects further margin expansion to 53% in the third quarter. The chip shop also expects sales to be in the range of $8.5 billion, that's well above the $7.8 billion Wall Street was expecting.
You would think that margin expansion would be kind of difficult in this environment but Intel was able to pull it off. I was also interested to know how selling tons of low margin Atom chips would do to Intels margin as well. It seems to not had much effect since they raised the margin by 5%. I think we might even see a decent rally in the NASDAQ tomorrow based on these numbers.
No comments:
Post a Comment