SAN FRANCISCO: Intel Corp posted stronger-than-expected third-quarter results on Tuesday, Oct 12 and forecast sequential sales growth of about 2.7 percent and a higher gross margin in the fourth quarter.
The first major tech company to post its third-quarter results, Intel forecast revenue of $11.0 billion to $11.8 billion in the final three months of 2010, in line with analysts' expectations of $11.32 billion, according to Thomson Reuters I/B/E/S.
Its third-quarter net profit was $2.955 billion, or 52 cents a share, versus $1.86 billion in the year-ago quarter. That was slightly higher than the 50 cents per share expected by analysts.
"It looks fairly well in line with consensus, a little upside," said Chris Caso, an analyst at Susquehanna Financial Group. "The revenue guidance for the December quarter is about in line with the Street, or a little better."
Since bellwether Intel warned in August about weak consumer demand for personal computers, semiconductor stocks have surged in part on expectations that the worst may be over for the TECHNOLOGY [] sector, and investors are looking for signs of strength to back their bets -- or sell.
Shares of Intel rose about 1.2 percent in extended trading after closing with a gain of 1.07 percent.
Intel's revenue in the quarter ended on Sept 25 was $11.1 billion, slightly above the $10.99 billion expected by analysts.
The PC industry has struggled in recent months with soft demand in the United States and Europe as well as rising inventories for chips and other components that have led some customers to reduce their orders for new parts.
Global semiconductor sales could grow just 5 percent next year as the economy continues to struggle, according to market research firm iSuppli.
The world's top microchip maker expects gross margins of 67 percent in the fourth quarter, give or take a couple of percentage points, compared with 66 percent in the third quarter.
Intel's results were buoyed by a 3 percent sequential increase in data center sales in the quarter, a business with higher margins than chips for PCs.
Some investors believe tech vendors' sales will pick up in the final months of 2010 as shoppers warily spend on holiday gifts -- with an out-sized amount going to smartphones and tablets such as Apple Inc's iPad while sales of PCs flounder.
Microprocessors made by Intel run 80 percent of the world's computers, but the Santa Clara, California-based company has yet to develop much presence in smartphones and tablets, which are often powered by energy efficient processors designed by ARM Holdings. - Reuters
The first major tech company to post its third-quarter results, Intel forecast revenue of $11.0 billion to $11.8 billion in the final three months of 2010, in line with analysts' expectations of $11.32 billion, according to Thomson Reuters I/B/E/S.
Its third-quarter net profit was $2.955 billion, or 52 cents a share, versus $1.86 billion in the year-ago quarter. That was slightly higher than the 50 cents per share expected by analysts.
"It looks fairly well in line with consensus, a little upside," said Chris Caso, an analyst at Susquehanna Financial Group. "The revenue guidance for the December quarter is about in line with the Street, or a little better."
Since bellwether Intel warned in August about weak consumer demand for personal computers, semiconductor stocks have surged in part on expectations that the worst may be over for the TECHNOLOGY [] sector, and investors are looking for signs of strength to back their bets -- or sell.
Shares of Intel rose about 1.2 percent in extended trading after closing with a gain of 1.07 percent.
Intel's revenue in the quarter ended on Sept 25 was $11.1 billion, slightly above the $10.99 billion expected by analysts.
The PC industry has struggled in recent months with soft demand in the United States and Europe as well as rising inventories for chips and other components that have led some customers to reduce their orders for new parts.
Global semiconductor sales could grow just 5 percent next year as the economy continues to struggle, according to market research firm iSuppli.
The world's top microchip maker expects gross margins of 67 percent in the fourth quarter, give or take a couple of percentage points, compared with 66 percent in the third quarter.
Intel's results were buoyed by a 3 percent sequential increase in data center sales in the quarter, a business with higher margins than chips for PCs.
Some investors believe tech vendors' sales will pick up in the final months of 2010 as shoppers warily spend on holiday gifts -- with an out-sized amount going to smartphones and tablets such as Apple Inc's iPad while sales of PCs flounder.
Microprocessors made by Intel run 80 percent of the world's computers, but the Santa Clara, California-based company has yet to develop much presence in smartphones and tablets, which are often powered by energy efficient processors designed by ARM Holdings. - Reuters
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