Intel Boosts 4th-Qtr Sales Targets on Strong Demand (Update1)
2001-12-06 16:32 (New York)
Intel Boosts 4th-Qtr Sales Targets on Strong Demand (Update1)
(Adds information about demand, investor comment starting in
third paragraph.)
Santa Clara, California, Dec. 6 (Bloomberg) -- Intel Corp.
boosted its forecast for fourth-quarter sales, as stronger-than-
expected holiday buying lifts demand for the biggest computer-chip
maker's newest Pentium 4 processors.
The shares rose as much as 3 percent after the company said
revenue will be $6.7 billion to $6.9 billion, compared with an
October estimate for sales of $6.2 billion to $6.8 billion.
Intel's sales stalled earlier this year as consumers and
businesses bought fewer personal computers during a U.S. recession.
Now, PC makers are stocking up on the company's chips, which run
more than 80 percent of the machines worldwide, to deal with a rush
of holiday sales. The Pentium 4 has been in short supply, and
analysts said Intel hasn't had to cut prices as much as forecast.
``The market has been a little more stable,'' said Scott
Lawson, an analyst at Banc of America Capital Management, which
owns Intel shares, on Bloomberg TV yesterday. ``The quarter has
provided a little bit more upside for Intel.''
Demand for computer chips is better than expected, and sales
of communications products are meeting targets, Intel said in a
statement. Spokesman Tom Beermann declined to elaborate ahead of a
conference call at 2:30 p.m. California time.
The Santa Clara, California-based company is expected to earn
10 cents a share on sales of $6.59 billion, the average analyst
estimates in a Thomson Financial/First Call poll.
Intel shares rose as high as $35.18 after the release. They
fell 45 cents to $34.16 in regular U.S. trading today before the
announcement. The stock has gained 71 percent since Oct. 1. |
