Opening View: Delta Air Lines Follows Intel into the Earnings Spotlight

After the close yesterday, Intel (INTC: sentiment, chart, options) stepped into the earnings limelight. The tech titan reported second-quarter net earnings of $1.6 billion, or 28 cents per share, above the average analyst estimate of 25 cents per share. Revenue for the quarter came in at $9.47 billion, compared to $8.68 billion a year earlier. The Street was calling for second-quarter revenue of $9.32 billion. For the third quarter, the chip maker predicts revenue of $10 billion to $10.6 billion; analysts, on average, are forecasting revenue of $10.1 billion. For 2008, INTC expects gross margin of 57% plus or minus a couple of points.

Elsewhere, Delta Air Lines (DAL: sentiment, chart, options) reported that it swung to a second-quarter loss of $1.04 billion, or $2.64 per share, compared to a gain of $164 million, or 42 cents per share, a year ago. Excluding items, DAL earned 35 cents per share; analysts, on average, were predicting a gain of 11 cents per share. Revenue for the quarter came in at $5.5 billion, a 60% rise from the period a year earlier and slightly above the Street's forecast for revenue of $5.45 billion.

In merger-and-acquisition news, Cleveland-Cliffs (CLF: sentiment, chart, options) has agreed to purchase Alpha Natural Resources (ANR: sentiment, chart, options) for $10 billion in cash and stock. More specifically, ANR shareholders will receive 0.95 share of CLF stock and $22.33 in cash for each ANR share – valuing Alpha at $128.12 per share, a 35% premium to Friday's closing price of $94.92. The deal is expected to increase the U.S.'s largest producer of iron ore, and comes in the wake of surging iron-ore prices and growing demand for steel.

Opening View: Delta Air Lines Follows Intel into the Earnings Spotlight