After the closing bell yesterday, Intel (INTC) reported a big earnings surprise. That news is helping the market surge higher this morning to another new 52-week high. Since Intel is a member of the Dow Jones Industrial Average, the news is helping that index close in on 10,000.
For the third quarter, Intel earned 33 cents a share which easily topped Wall Street’s estimates of 28 cents a share. A year ago, Intel earned 35 cents a share. The really big surprise, however, came on the revenue side. Intel took in sales of $9.4 billion which was above the Street’s expectation of $9 billion.
This is a big change from last earnings season when many companies beat their earnings estimates yet failed to beat on their revenues forecasts. In other words, they were improving profits by simply cutting overhead. If Intel is any indication, then companies are truly growing again. I currently rate shares of Intel a Hold.