Intel (INTC) announced first-quarter revenue of $12.9 billion for the quarter ended March 31, 2012 on April 17. Operating income, net income and earnings per share for the quarter were $3.8 billion, $2.7 billion and $0.53 per share. On May 7 the company approved a 7.1% quarterly dividend increase to 22.5 cents a share, up from the 21 cents, boosting the payout for the third time in less than two years. This represents a yield of 3.3% at the time of this writing.
We’ll take a look full year 2012 projections based on partial guidance provided by the company then share our valuation analysis.
Management provided the following 2012 guidance:
- Gross margin percentage: 64 percent and 65 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a few percentage points.
- Spending (R&D plus MG&A): $18.3 billion, plus or minus $200 million.
- Tax Rate: approximately 28 percent down from prior expectations of 29 percent.
- High single-digit revenue growth noted in the conference call.
We see “high single-digit revenue growth” as 6% considering first-quarter results combined with Q2 projections are off to a slow start when compared with the first half of 2011. Management expects growth to pick up in the second half to meet our 6% single-digit revenue growth for the full year as detailed below.