Intel Is Heading For $1 Billion Revenue Weeks
Intel's [INTC] financial results were at a record level this week. The numbers greatly exceeded its own estimates, which are usually very accurate.
Tiernan Ray, at Barron's writes Tech Trade Daily. He asked: Intel: How Do You Explain Another $800M Of Revenue? - Tech Trader Daily - Barrons.com
Intel (INTC) crushed Street estimates this afternoon, reporting Q1 revenue of $12.9 billion and earnings per share of 59 cents, versus the average $11.6 billion estimate for revenue and 46 cents for earnings, excluding some costs.
Even on a GAAP basis, including certain deferred revenue estimates, the quarter's $12.8 billion in revenue and 56 cents per share was a stunning beat.
...How could Intel be so wrong?
I mean, the analysts were obviously way off, on average, but Intel's own forecast back on January 31st was for $11.7 billion in revenue, give or take $400 million.
...So, what gives, Intel? Why were you way off on your guidance?
The answer seems to be a larger than expected demand for chips, especially for data center computing. In the prior quarter Intel averaged revenues of $920 million a week.
And as demand accelerates with enterprise spending catching up from past moratoriums, it could easily exceed $1 billion weeks in the current quarter.