Intel Reports Worst GAAP Earnings Since 2009; "Beats" Expectations Thanks To $1.4 Billion In Addbacks

While it is unclear why Intel stock is down after hours after reporting Q2 2016 earnings, which we can mostly attribute to the small miss in revenue, which came in at $13.5 billion, below the $13.55 billion expected, coupled with a data center group which grew only 5%, below the 15% growth forecasted (on platform volumes rising 5% and platform average selling prices down 1%,) , despite the company beating on the bottom line and on profit margin, it is quite clear that just like Microsoft, Intel engaged in yet another egregious non-GAAP fudging exercise when it reported non-GAAP EPS of only $0.27, which however promptly rose to $0.59, beating expectations of $0.54, only thanks to $1.4 billion in restructuring charge addbacks.

For those who care about such things as actual earnings, this was thje lowest GAAP earnings per share INTC reported going back all the way to Q2 2009.

 

This is what else Intel added: "Net income for the second quarter was $1.3B, down 51% on a year-on-year basis. Earnings per share was $0.27, down 28 cents on a year-on-year basis. During the quarter, we purchased $2.3B in capital assets, paid $1.2B in dividends, and repurchased $0.8B of stock."

Odd how the restructuring charges almost prcisely offset the net income drop.

And since the company announced last quarter that it is laying off 12,000, in an abysmal Q1 earnings report...

There was $1.4B in restructuring charges for the quarter as a result of our restructuring program announced in April.

... all is forgiven, and INTC can now add-back however many restructuring costs it wants for the foreseeable future.