Intel Bedazzles (INTC, SMH, USD)

Intel Corporation (NASDAQ: INTC) has just reported earnings and gave guidance for the quarter ahead.  The processor giant posted $0.33 EPS and $9.39 billion in revenues.  Consensus estimates from Thomson Reuters were $0.28 EPS and $9.04 billion in revenues.  Gross margin also came in 57.6%, above expectations of 54%.  Intel gave guidance of  $10.1 billion in revenues, plus or minus $400 million; it also gave guidance for 62% gross margin, plus or minus 3 points.  Next quarter’s estimates from Thomson Reuters are $0.34 EPS on $9.51 billion in revenues.

Intel is cutting its cap-ex expectations for the year.  The new range is $4.5 billion, plus or minus $100 million; and that is down from $4.7 billion, plus or minus $200 million. As a reminder, additional data will be out in the conference call and this is effectively all unfinished business.  We are seeing a reaction in the Semiconductor HOLDRs (NYSE: SMH) after a 0.15% drop to $26.24 with an after-hours level of up 2.7% at $26.20, and the Ultra Semiconductor ProShares (NYSE: USD) closed down 0.44% at $29.57 and it is trading up almost 5% at $29.80.

Intel closed up unofficially at the 4:00 bell by 0.44% at $20.49  and its 52-week trading range is $12.05 to $20.69.  Shares were halted ahead of the news.

UPDATE at 4:46 PM EST: Intel had traded 99.267 million shares before being halted and the stock is now trading up 6.7% at $21.74 and the trading volume is listed as 102.9 million shares.

Jon C. Ogg
October 13, 2009