CT, this article says 15% unit growth, where did you see
the flat unit sales?
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Intel meets estimates; next quarter looks grim
By Michael Kanellos
Staff Writer, CNET News.com
October 17, 2000, 1:30 p.m. PT
just in Intel beat lowered earnings expectations today, but the outlook for the fourth quarter looks like it could be disappointing.
The company reported net income of $2.9 billion, or 41 cents a share, for the third quarter, not including acquisition costs, an increase of approximately 52 percent over the same period a year ago. Revenue came to $8.7 billion, a record. Including acqusition costs, net income came to $2.5 billion, or 36 cents a share, up 72 percent from the third quarter of 1999.
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The numbers beat lowered expectations. The company was expected to report earnings of 38 cents a share, or roughly $2.7 billion, according to the consensus estimate from First Call/Thomson Financial, on revenue of approximately $8.6 billion.
Intel's earnings include $966 million from interest and investments, higher than the $900 million anticipated for the quarter. Excluding that amount, Intel still beat the revised estimates.
Still, it is unclear whether the results will make analysts cheer. In its statement, Intel said revenue would grow by 4 to 8 percent sequentially in the fourth quarter, lower than expected for the traditionally strong holiday period.
Last year, Intel reported earnings of 28 cents a share (split-adjusted and excluding acquisition costs) on revenue of $7.3 billion, excluding acquisition costs.
On Sept. 21, the Santa Clara, Calif.-based chip giant surprised investors when it warned that revenue, and in all likelihood profits, for the third quarter would be lower than anticipated because of slowing PC sales. The announcement sparked a slide in both the company's stock and the market overall.
Although technology stocks have been relentlessly hammered in recent weeks, the PC market is not shrinking. In fact, annual unit shipments of PCs continue to grow around 15 percent. |
