Analyst Couch: Intel at high end of Q4 forecast
Silicon Strategies
12/02/2003, 8:35 PM ET
PORTLAND--During its mid-quarter update slated for Thursday (December 4, 2003) of this week, Intel Corp. is expected to narrow its sales forecast to the high end of its previous guidance, according to analysts.
Based on the ongoing strength in the PC market, Intel is expected to announce that its sales will range from $8.5-to-$8.7 billion in the fourth quarter of 2003, according to a new report from Pacific Crest Securities Inc., an investment banking firm in Portland.
In October, Intel projected that its sales would range from $8.1-to-$8.7 billion in the fourth quarter. At the time, Intel also reported third-quarter revenue of $7.8 billion, up 15 percent sequentially and up 20 percent year-over-year.
Third-quarter net income was $1.7 billion, up 85 percent sequentially and up 142 percent year-over-year. Earnings per share were $0.25, up 79 percent sequentially and up 150 percent from $0.10 in the third quarter of 2002 (see October 14 story).
Intel is expected to have another banner quarter in Q4. The microprocessor giant is projected to earn $0.30 a share on sales of $8.6 billion for the fourth quarter, said Michael McConnell, an analyst with Pacific Crest Securities, in the report.
For the year, the company is expected to report earnings of $0.83 a share on sales of $29.8 billion, McConnel said. This compares to earnings of $0.46 a share on sales of $26.76 billion in 2002.
Intel's growth is attributed to the seasonal demand for desktop and notebook PCs, he said. Demand for notebooks is especially strong, he said.
The growth of its Centrino processor for notebooks, coupled with a slower capacity build within its 300-mm fabs in the second half of 2003, will also enable the company to increase its gross margins to 60 percent, plus or minus 200 basis points, he added. |
