Intel Reports Q3 2012 Earnings, Hamstrung By Macroeconomic Enviroment

Intel just reported their Q3 2012 numbers which come in at quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $3.0 billion, and earnings per share of $0.58. In other words, their figures are mostly flat compared to their Q2 2012 numbers, with the exception of 5.1% higher net income and 7.4% higher earnings per share.

Since historically Q3 has been a strong quarter than Q2, this is not exactly good news. Intel already lowered their expectations for Q3 over a month ago and now came in slightly above their revised expectations. The company was challenged by a tough macroeconomic environment as well as inventory reduction in the PC supply chain. In previous years, Intel generally reported an inventory increase during the same period.

For Q4, Intel expects revenue of $13.6 billion, plus or minus $500 million, which reflects that the situation is not going to drastically improve in the last quarter of the year. Except for the Q4 2011, which was impacted by the HDD shortage, Q4 is historically the strongest quarter in the annual cycle.

Currently Intel stocks are trading down 2.24% after close.

After the conference call we will deliver an in-depth earnings analysis.