Yesterday after the financial markets had closed, Intel announced its first quarter results. Intel is one of the technology sector’s bellwethers and the Company’s results deserve scrutiny.
The firm reported that their net income, that is profits, fell 55% from the year before. Obviously this is not a good result. However, and most importantly they also reported that their results hit bottom during the first quarter. That means that at some point sales accelerated upward. I can say that from personal experience that Intel is very conservative in reporting and projecting their results. What that means is that they are fairly certain that their results have hit bottom.
Intel also always gives an upcoming outlook of their results. So what do they believe will occur going forward? They declined to provide formal earnings guidance – a conservative choice given the economic environment. However, they said for internal planning that they expected better than normal revenues in the second quarter.
Overall, I feel as if these results are a good indicator that the recession is bottoming out. This is because the tech industry is a leading indicator of economic health and Intel one of that industry’s leaders.
Jason
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