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After Hours Action: Intel

Tuesday, 13 Apr 2010 | 5:23 PM ET

Shares of Intel surged 4% in post market trade after the company released earnings.

What must you know?

Intel outstripped Street expectations with earnings, revenue, gross margins and a forecast that all surprised analysts, buoying the company's shares.

The world's biggest maker of computer chips reported a first-quarter profit of 43 cents a share excluding one-time items, up from 11 cents a share in the same period last year.

Intel's revenue rose to $10.3 billion, up from $7.145 billion last year.

The results easily outpaced what analysts were expecting from the chip maker. A consensus estimate compiled by Thomson Reuters put Intel's profit at 38 cents a share and its revenue for the quarter at $9.841 billion.

Intel's quarterly gross margins of 63 percent also were better than expected.

For the current quarter, Intel now expects sales of $10.2 billion, plus or minus $400 million.

And in an exclusive conversation with CNBC’s Jim Goldman, Intel CEO Stacy Smith revealed that this earnings report is one for the history books.

”What you see in Q1 is record revenue for the first quarter. And it’s being driven by investments we made during the downturn,” Smith said.

Word on the Street
The Fast Money traders take a look at today's top business stories.


The Intel CFO also told us that unlike past quarters, “Intel plans to hire 1,000-2,000 workers.”

What’s the trade?

Full year guidance was impressive, says Pete Najarian. Combine that with Intel’s revenue numbers and it gives me the sense IT spending is back. I’m hearing it could total as much as $3.4 trillion.

No doubt that Intel crushed says Guy Adami. But it’s hauntingly similar to what happened last quarter when they reported great results, the stock spiked after hours, then sold-off later. I think we’re setting up for a similar move.

You can’t dispute the past patterns, says Gary Kaminksy. But in January money managers had good reason to sell and lighten up. Now I think the fear is not to be invested in this market. What’s that mean for investors? I think the market trades higher on earnings this quarter.

I wouldn’t be surprised to see some of the frothiness come off however I also think this quarter is different, adds Tim Seymour. I really believe the world is better.

Looking at rivals, Intel results can’t be bad for IBM, says Karen Finerman. But I don’t think it’s out of the question that we may see great earnigns and little follow through this season.

If you’re looking for a downstream play, look at TXN, adds Najarian. I think it’s got room on the upside. Also check out Maxim .

TXN makes a lot of sense to me too, says Guy Adami. And if you believe in the 3-D trend you might want to look at NVIDIA.

>Click here for more CNBC coverage of Intel earnings

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AFTER HOURS ACTION CHECK-IN: CSX

In extended trade shares of CSX popped as much as 3% after the railroad reported first-quarter earnings and revenue that exceeded Wall Street projections

The railroad giant reported first-quarter earnings of 78 cents a share, compared with a gain of 62 cents a share this time last year.

CSX said its sales reached $2.5 billion, up from $2.25 billion last year.

Analysts who follow the company projected CSX to earn 70 cents a share on a topline of $2.38 billion, according to a consensus estimate from Thomson Reuters.

What should you make of this?

CSX is telling us about the global economy, says Pete Najarian. It shows strength.

I agree, says Tim Seymour. The proclamation is that the world is a better place.

We're seeing a mosaic start to build, muses Karen Finerman. And the picture I'm seeing says the world is gettting better.

> Click here for more CNBC coverage of CSX earnings

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EAR TO THE WALL: READING TEA LEAVES OF EARNINGS

Gotta put our "ear to the wall" on what traders will be listening for on conference calls all throughout earnings season.

Veteran trader Gary Kaminsky says he’ll be listening for a few key phrases. They include:

1) Cautious Optimism

2) Non-Specific Dividend Policy

3) Concerns About Higher Rates

And if he hears these kinds of comments he rethinks his position. How so? Watch the video above and find out now!



______________________________________________________
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Trader disclosure: On April 13, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CSX) call spread; Najarian Owns (LVS) call spread; Najarian Owns (JPM) call spread; Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CSX) Call spread; Najarian Owns (LVS) Call spread; Najarian Owns (JPM) Calls; Najarian Owns (PCX); Najarian Owns (TXN) Calls; Najarian Owns (VLO) Calls; Najarian Owns (YUM) Call Spread; Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM) ; Finerman Owns (BAC); Finerman's Firm Owns (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Finerman Owns (YUM); Seymour Owns (CHL), (DRYS), (GE), (BAC), (EEM), (F), (INTC), (LVS), (SBUX); Seymour's Firm Owns (POT)

For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients|
Edwards Owns (GS) for Clients

For Citi analyst Donald Fandetti
Citi Owns (AXP)
Citi Owns (COF)
Citi Has Provided Baking Services To (AXP)
Citi Has Provided Baking Services To (MA)
Citi Has Provided Baking Services To (COF)
Citi Expects To Receive Compensation from (AXP), (V), (MA)
Citi Has Acted As Manager or Co-Manager Of Offering of (AXP), (COF)
Citi has Managed a Securities Offering of (YUM)
Citi Has Received Compensation from (YUM)
(YUM) is an investment banking client of Citi



CNBC.com with wires

  Price   Change %Change
CSGN
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IBM
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INTC
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MXIM
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NVDA
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TXN
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