Reuters: "Intel Q2 beats expectations - analysts"
SAN FRANCISCO, July 14 (Reuters) - Semiconductor maker Intel Corp.'s second quarter earnings surpassed Wall Street consensus estimates and some analysts were pleasantly surprised by the company's lower manufacturing costs.
Earlier Tuesday, Intel reported net income of $1.17 billion, or $0.66 a diluted share, on revenues of $5.9 billion. Analysts said the $0.66 a share includes a write-down of about $0.04 a share for lower costs of current inventory.
According to First Call, the consensus on Wall Street was for $0.68 a share.
''It would have been closer to $0.70 (excluding the write-down),'' said Rob Chaplinsky, a Hambrecht & Quist analyst. ''It's actually an upside (surprise). Intel has made significant progress in reducing expenses in the factory...It's an up quarter with a relatively upbeat outlook.
''This is for higher than normal inventory write-downs,'' said Mark Edelstone, a Morgan Stanley Dean Witter analyst. ''It's a pretty good number. The quarter ended up coming out the way Intel would have thought when they gave guidance three months ago. After all the contortions everyone was going through, it ended up being a pretty good number.''
Edelstone was referring to the rumors on Wall Street in recent weeks that Intel would pre-announce that its second quarter would be worse than expected. The company was also rumored to announce layoffs, in addition to the 3,000 job cuts it announced in April.
Intel said it will extend the time needed to complete its 3,000 job cuts, which are being reduced primarily through attrition, to the end of the year.
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