Intel earnings surprise: we have lift-off

Jan 15th, 2010
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Depending on how you look at it, Intel either turned in a monster of an earnings report for the fourth quarter of 2009, or they’ve finally pulled back up to 2007 levels—the former view gives you a whopping 875 percent jump in year-over-year net income, while the latter gives you essentially three “lost years,” in which the company’s revenues topped out (2007), then tanked (2008), then ramped right back up (2009). Either way, Intel has posted a “V-shaped recovery” that is gunning its stock up in after-hours trading. The basic numbers are in the chart below, but you can get the whole story by looking at only two of the: top-line revenue, which is back up to bubblicious 2007 levels, and gross margin, which is a record 65 percent. What this means is that a combination of aggressive cost cutting and a fresh round of IT and consumer spending has gotten Intel back to where it was before the financial crisis of late 2008.

a7996324ddrnings.png Intel earnings surprise: we have lift off

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