Intel: Growth And Value In Spite Of Short-Term Concerns


Intel (INTC) continues to churn out impressive annual results in spite of HDD shortages (The shortage is due to disruption from flooding in Thailand), PC and ultrabook weakness and concerns regarding the company’s penetration into the smartphones and tablet market. The recent deals with Motorola (MMI) and Lenovo (LNVGF.PK) for Medfield atom chips is a positive step in further addressing the smartphone and tablet markets.

We’ve viewed Intel as attractive in the past. The market seems to be taking notice and the discount to our fair value has started to narrow, even as fair value continues to climb due to the strength of Intel’s results.

Intel announced fourth-quarter revenue of $13.9 billion for the quarter ended December 31, 2011. Operating income, net income and earnings per share for the quarter were $4.6 billion, $3.4 billion and $0.64 per share. The company reported full year revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion and EPS of $2.39; all records.

We’ll take a look at the numbers through Q4 then share our valuation analysis.

The numbers by business segment
The TTM revenue and operating income for each segment through 12/31 is shown below.
….Continue reading the full article at SA…

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