The ticker headline on 39% declining earnings aside, Intel posted solid numbers tonight. Revenues and earnings were ahead of expectations, if only slightly. Perhaps more importantly, inventories are down, and Intel is guiding revenues to the high end of the analyst range for its next quarter.
Could an Intel recovery be at hand? Well, microprocessor unit sales are up, and the company says that average selling prices improved as well. On the other hand, margins are declining in the current price war, and most of the company’s other business is still indifferent to down. I’m also worried that they’re not getting enough mobile design wins, but there is no color on that in the current release.
While the bulls briefly had INTC stock up in after hours, this definitely isn’t the news of unalloyed improvement they were looking for. Then again, the stock is now down again in after hours, so maybe the Intel bulls are actually reading the release, rather than just trading off the consensus numbers.