Intel & VMware Jump in After Hours Tradings

Intel Corporation finished the after hours session up 4.58%, while traders pushed shares of VMware up 12.48%.   

Intel
Paul Otellini stated that Intel's Q1 results were "...an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies."  Below is a comparison of my Q1 prediction versus actual results.

Income Statement
Three months ended March 31, 2011
	Tyler Smithson	Actual
Net Revenue	$11,377	12,847
Cost of Sales	4,278	4,962
Gross Margin	7,099	7,885
R&D	1,670	1,916
MG&A	1,672	1,775
Amortization	7	36
Operating Expenses	3,349	3,727
Operating Income	3,749	4,158
Gains/(Losses) on Equity Investments	-39	28
Gains/(Losses) on Other Equity Investments	-27	-
Interest and Other, Net	95	185
Income Before Taxes	3,778	4,371
Provision for Taxes	1,141	1,211
Net Income	$2,637	$3,160
EPS	$0.47	$0.56

VMware

Not only did VMware have a spectacular quarter, Mark Peek, the chief financial officer, also guided higher for the second quarter and fiscal 2011 year:

 

VMware's first quarter results were driven by strong demand across all geographies.  Second quarter 2011 revenues are expected to be in the range of $860 and $880 million, a year-over-year increase of 28% to 31%. For the year, we expect annual revenues to be in the range of $3.55 billion and $3.65 billion, an increase of 24% to 28% compared to 2010. We expect our non-GAAP operating margin for 2011 to expand slightly from 2010.

Below is a comparison of my Q1 prediction versus actual results.

Income Statement
Three months ended March 31, 2011
	Tyler Smithson	Actual
Total Revenue	$817,542	$843,721
Operating Ex:
Cost of License Revenue	50,824	56,018
Cost of Service Revenue	89,752	93,879
R&D	179,859	169,163
Sales & Marketing	302,490	302,924
G&A	74,226	68,235
Total Operating Ex	697,152	690,219
Operating Income	120,390	153,502
Investment Income	2,648	3,406
Interest Ex	-1,093	-959
Other Income	-3,546	165
Income Before Taxes	118,400	156,114
Provision for Income Taxes	21,111	30,302
Net Income	97,289	125,812
EPS	$0.42	$0.48

The Street v. Tyler Smithson

Company	Metric	Actual	Analysts’ Consensus	% Error	Tyler Smithson	% Error
Intel	Revenue	$12.90	$11.60	10.08%	$11.38	11.78%
	EPS	$0.59	$0.46	22.03%	$0.47	20.34%
VMware	Revenue	$843.72	$815.06	-3.40%	$817.54	-3.10%
	EPS	$0.48	$0.42	12.50%	$0.42	12.50%

INTC Ownership                     VMW Ownership

Author:   NO                          Author:  YES

Author’s Family:  NO              Author's Family:  NO

Disclaimer:
· Opinions, estimates and projections contained in this report are of the author as of the date published and are subject to change without notice.
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· It is important to do your own due diligence on any position you enter.