Intel misses its own guidance

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Intel posted $8.0B in revenue for Q2-2006, vs. estimates of $8.3B by
Wall Street. Wall Street also predicted $0.13/share EPS, but Intel beat
that by getting $0.15/share. But that means that Intel was able to get
cost savings (e.g. selling off unprofitable units and laying off
managers). To top it off, Intel is forecasting revenue for Q3 to be
between $8.3-$8.9B, which is less than the $9.0B that Wall Street has
previously predicted.

AMD also suffered some pre-announced pain during this quarter, so it's
unclear how marketshares have been affected up or down for either
company. We'll only know for sure when AMD announces it's own full
report next week.

Intel tops Q2 profit collapse with pessimistic forecast | The Register
http://www.theregister.co.uk/2006/07/19/intel_q2_06/

Intel profits fall by 57%
http://www.theinquirer.net/default.aspx?article=33140

Intel income pain not as deep as feared | CNET News.com
http://news.com.com/Intel+income+pain+not+as+deep+as+feared/2100-1014_3-6096097.html?tag=nl

Yousuf Khan
 
J

James Jones

Intel posted $8.0B in revenue for Q2-2006, vs. estimates of $8.3B by
Wall Street. Wall Street also predicted $0.13/share EPS, but Intel beat
that by getting $0.15/share. But that means that Intel was able to get
cost savings (e.g. selling off unprofitable units and laying off
managers). To top it off, Intel is forecasting revenue for Q3 to be
between $8.3-$8.9B, which is less than the $9.0B that Wall Street has
previously predicted.
Click to expand...

I believe that the sales went through in Q3 (or haven't gone through
yet). The laying off of managers will actually cost them money in the
short term.
- Jim
 
Y

Yousuf Khan

James said:
I believe that the sales went through in Q3 (or haven't gone through
yet). The laying off of managers will actually cost them money in the
short term.
- Jim
Click to expand...

You could be right about the manager layoffs. Their inventory levels
rose some more too, despite the fact that this was supposed to be the
quarter where they started the price war to clear this inventory. So it
looks like the price war has been pushed out longer.

Yousuf Khan
 
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