Analysts were surprised by Intel Stock second quarter results. Estimates had placed the outlook for a jump to 52 cents in earnings versus 39 cents for the same quarter last year but most analysts had doubted those numbers would be reached. Instead Intel stunned these analysts by generating 55 cents of earnings on revenue of $13.83 billion. Analysts had felt that Intel would be lucky to earn $13.7 billion for the second quarter. Intel estimates there are still 600 million computers more than 4 years old that will need to be replaced. With their margin range between 55 to 65 percent, they are well positioned to continue to beat estimates going forward.
“Come In Every Day and Grow Earnings”
The CFO was speaking on CNBC after hours today and spoke about the Fed’s intervention on social media stocks that trade on the NASDAQ. He indicated he had no comment on Yellen’s testimony and said “our jobs is to come every day and grow earnings”. This is what we are investors like to hear. Don’t be distracted by the media noise but instead focus on continuing to position the company to improve shareholder value further. The CFO commented that Intel continues to grow revenue at the high range of their margins, namely closer to 65%. Meanwhile with corporate PC sales growing, they have also seen rapid growth in their smaller processors for handheld type devices (ATOM). He indicated that the focus remains on pushing costs still lower and improving battery life. The company, he indicated, he proceeding quickly into more and more mobile devices.
Intel earnings news also announced another strong share buy back of an additional $20 billion. Intel expects another 5% rise in revenue this year.
Intel Stock – Trade Ideas for the rest of 2014
Intel stock has provided double-digit annual gains for my portfolio since I first started trading it in 2010. Earnings announced today and forward guidance supports an outlook that Intel Stock will continue to do well this year. Here are the stock trades I am contemplating to take my Intel trades into the end of this year. This Intel Stock trade ideas and strategies outlines is for FullyInformed USA Members. Members can login directly through this link or Members can sign in to the full USA members site here. Non-members can join here.