Q1 Earnings: Intel achieves profit, but down -55%


Intel beat Wall Street expectations [consensus: $7.0B, $0.03], achieving a revenue of $7.1 billion and a profit of $647 million and if you own a share of INTC , you just earned 11 cents. On the downside, last year, you would have earned over one dollar for the same time period, which was a result of revenue dropping by 26% while the income/profit dipped by 55%.

On the upside, even with arecession of this magnitude, the semiconductor industry has shown its resilience – people need computing devices. If the commercial sector fails, there is always the consumer one, and vice versa. The company refused to provide any revenue outlook for actual, second quarter 2009 – but Intel’s President and CEO, Paul Otellini stated that "the industry bottomed out in the first quarter and that the industry is returning to its normal seasonal patterns".

Usually AMD reports two days after Intel, on Thursdays, but given the massive changes inside the company that may not be the case. The split of the company into AMD and GlobalFoundries, meant that billions of dollars going left and right and AMD took a seven day delay and will report its financials on April 21st at 5:00PM EST [2100 UTC]. We expect AMD to post somewhere around 1.1-1.5 billion USD profit, the first profit in years due to cash dispensation by ATIC and Mubadala Abu Dhabi [owner of 22% of AMD stock]. nVidia has yet to announce its date for the conference call, but we expect that nVidia will post a profit as well.

If INTC, AMD and NVDA all post a profit, it looks like we’re out of the gray area. Add to the fact that TSMC is now reporting that the company will post a profit or break even, adding even more reasons be optimistic.