Intel Q1: EPS Of 43 Cents, Revenue Of $10.3 Billion, Gross Margin At 63%; All Ahead Of Estimates (Updated)

Once again, Intel (INTC) has handily beat analyst estimates.

This afternoon Intel posted first-quarter EPS of 43 cents, up 32 cents from a year ago and five cents ahead of the Street consensus. Revenue of $10.3 billion, was up 44% from last year and exceeds expectations for $9.83 billion.

Gross margins, a certain focal point for investors, was 63%, well ahead of the 61.3% Street mean.

Looking ahead, the company sees:

• Q2 revenue of $10.2 billion, plus or minus $400 million; analysts were looking for $9.7 billion
• Q2 gross margin of 64%, plus or minus two points; analysts expected 60.4%
• FY2010 gross margin of 64%, plus or minus three points; the company had previously guided to 61%, plus or minus three points. Analyst estimates were 61.6%

Intel shares are up 4% in after hours trading.

Update from Intel’s earnings call:

CEO Paul Otellini said margins were helped by particularly strong demand for higher end PCs. The company’s mobile business set a new record, as demand for notebooks continues to be high. Meanwhile, signs of corporate demand continues to show signs of improvement. Otellini says that’s likely to continue given the aging of corporate PC fleets. “You’re getting to the point as CIOs are feeling better about business, that it makes economic sense to swap these out.”

CFO Stacy Smith noted that Intel’s revenue per employee was the third highest on record at $129,000. Employee count was flat for the quarter.