Intel results and forecast beat estimates
Intel Corp cheered investors with a strong quarterly revenue forecast and better-than-expected fourth-quarter earnings as sales to corporations grew.
January 14, 2011 / 10:04 IST
Intel Corp cheered investors with a strong quarterly revenue forecast and better-than-expected fourth-quarter earnings as sales to corporations grew.
Intel posted an 8% increase in fourth-quarter revenue and forecast revenue of USD 11.1 billion to USD 11.9 billion in the first three months of 2011.The fourth-quarter revenue slightly exceeded the USD 11.37 billion expected by analysts, according to Thomson Reuters I/B/E/S. Analysts, on average, had expected revenue of USD 10.73 billion in the first three months of 2011."It seems like they're doing pretty well. The stock's not really reacting off of it. Right now there's just a larger overhang over the stock when it comes to tablets and smartphones. That may be an area where investors are more cautious," said Patrick Wang, an analyst at Wedbush Securities.Intel had a record gross margin of 67.5% in the fourth quarter, compared to 66.7% expected by analysts.It forecast a gross margin of 64% in the current quarter, plus or minus two percentage points. Analysts had forecast a first-quarter gross margin of 63.5%.Last week, Intel unveiled its newest personal computer microchip, code-named Sandy Bridge and seen as a major leap in processing power, and Chief Executive Paul Otellini has said computer manufacturers are rapidly adopting them.Intel said net income totaled USD 3.4 billion, or 59 cents a share, in the fourth quarter, compared with 53 cents per share expected by analysts.Shares of Intel rose 1.5% to USD 21.61 in after-hours trading, after closing down 0.06% at USD 21.29 on Nasdaq.Major technology companies are expected to keep up sales and profit growth in 2011, but economic troubles in the United States and Europe could temper their results. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
