Wintel Reports, the Crowd Goes Wild

  • Posted by
  • on January 21st, 2012

The stodgy veterans went back-to-back as they knocked earnings outta the park Thursday.

 

 

Ok, we’ll keep it short and sweet here. Anything and everything that can possibly be hashed and re-hashed about Microsoft ($MSFT) and Intel‘s ($INTC) earnings has already been done so….many times over on the stream and the boob tube.

It wasn’t flashy, but the tech titans both let loose reports that beat EPS estimates…homeruns in our book considering the circumstances (floods, $AAPL, etc.). Investors obviously felt the same as both stocks saw healthy gains in Friday’s session.

For those of you just wanting see the basics, let’s cut right to the chase:

MSFT Q2 YoY

  • Revenue +4.7% (+20% QoQ)
  • Net income about flat
  • EPS up a penny
  • PC sales -3%
  • Business Division rev +4.1% (+12% QoQ)
  • Entertainment & Devices rev +15% (+116% QoQ)
  • Windows & Windows Live rev -6.3%
  • Servers & Tools rev +8.7% (+12% QoQ)
  • Online Services +14% (+25% QoQ)

 

2 year chart (Y! Finance)

 

Ranked 17th in the BeanScreen this month, we’ve owned shares in MSFT since Oct. 2010, adding a couple more times along the way. The returns haven’t been spectacular, but the lack of volatility has spared our stomachs the queasiness that many other high flying tech names have dealt their owners over the last year or so. Not to mention, MSFT currently dishes out about a 3% divy yield.

Now let’s check out Intel’s stats. They reported Q4 and full year numbers:

INTC Q4 YoY

  • Revenue +21%
  • Net income +6.3%
  • EPS up 8 cents
  • PC Client rev +17%
  • Data Center rev +8%
  • Atom rev -57%
  • “Other” rev +35%

INTC Full Year

  • Revenue +24%
  • Net income +13%
  • EPS +19%
  • Operating income +12%
  • Gross margin -2.8pts
  • PC Client rev +17%
  • Data Center rev +17%
  • Atom rev -25%
  • “Other” rev +64%

 

2 year chart (Y! Finance)

 

Like MSFT, we’ve owned INTC for about a year and a half, starting a position in Aug. 2010. Coming in 24th this month, we loved INTC’s fundamentals going into this latest report…and it doesn’t appear that will change anytime soon.

So there you have it. Two stalwarts of the Mighty Tech League showing the rookies of the industry that they can still play ball. Maybe not as nimble as they used to be, but reliable nonetheless.

 

sources: Microsoft’s earnings edge ahead of estimates – MarketWatch

Microsoft 2Q beats Street despite soft PC market – AP

2012 Looks Bright for Microsoft – Zacks

Intel beats targets, plans to ramp up spending – MarketWatch

Intel Reports Record Year – Yahoo! Finance

Intel Rising: Q4 Beats, Q1 Rev View in Line – Barron’s

 

disclosure:  we currently own shares in MSFT, INTC and AAPL

 

 


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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