INTEL, THE world’s biggest chipmaker, has forecast sales and profitability that topped estimates, indicating that computer demand is returning to pre-recession levels.
The shares jumped 6.4 per cent in late trading yesterday. For the fourth quarter, Intel forecast sales of $9.7 billion to $10.5 billion, compared with the $9.5 billion average estimate in a Bloomberg survey.
Third-quarter net income dropped to $1.86 billion, or 33 cents a share, the company said in a statement. Revenue fell 8.1 percent to $9.39 billion.
Yesterday’s numbers were all the more impressive because Intel raised its outlook two months ago, said Patrick Wang, an analyst at Wedbush Morgan Securities in New York. Chief Executive Officer Paul Otellini expects the PC market to grow this year, defying analysts’ predictions. “They had a phenomenal quarter once again,” said Wang, who expects the shares to outperform their peers.
“They beat expectations on revenue and from a gross-margin standpoint.” Intel rose $1.31 to $21.80 in extended trading. The shares, up 40 per cent this year, closed at $20.49 on the Nasdaq.
US stock index futures rose sharply in late trading after the Intel results. The jump in futures suggested that Wall Street will open higher today.
– (Reuters and Bloomberg)
