Intel -- the largest customer of Amkor with more than 10% revenue coming from it -- Is Reporting Earning Tomorrow
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Street expects Intel to report a 38% rise in second-quarter net
A service of Semiconductor Business News, CMP Media Inc.
Story posted 10:30 a.m. EST/7:30 a.m., PST, 7/12/99
SANTA CLARA, Calif.--Intel Corp. will be cranking out good news here tomorrow afternoon (July 13), if analysts have it figured right.
The world's largest chip maker will announce second quarter earnings after the markets close, and analysts surveyed by First Call Corp. are expecting a 38% rise to 53 cents a share. That compares with a net of 33 cents or $1.17 billion that is reported for the second quarter last year.
Sales are looking good too, and the Street expects an increase here to $7 billion, up about 18% from $5.9 billion recorded last year. Intel has regained some of the market share that it lost last year, analysts said, by cutting prices.
Slow PC and chip demand have started to turn around, analysts noted, and they expected them to improve through the rest of this year.
Intel will report good profits, analysts said, because its production costs are continuing to come down. Some analysts voiced concern earlier over Intel's aggressive price cutting during the second quarter, but that does not appear to have adversely affected quarterly results.
Analysts predicted that the company's gross margin for the quarter will be about 59%, unchanged from the first quarter.
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