Intel Cruises Past Fourth-Quarter Earnings Estimates--with a Catch
Intel lived on low inventories throughout the fourth quarter. Still, the company managed to muster a solid quarter.
Strong demand wasn't the only thing that propelled Intel (INTC) past fourth-quarter earnings estimates.
Despite facing some bumps and tight inventories, Intel was still able to earn more in the fourth quarter than Wall Street expected. Before one-time acquisition-related charges, the company exceeded consensus earnings estimates by $0.06 per share, or almost 10%. The bigger story for Intel, though, was how it managed to beat the Street. Most of the earnings surprise came from higher-than-expected gains from the sale of equity investments. This is somewhat of a concern because the extra earnings are not being produced by the company's core chip operations.
Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.