Intel Posts Its Best Results Ever; 3Q View Above Estimates
4:37 PM ET 7/13/10 | Dow Jones
DOW JONES NEWSWIRES
Intel Corp. (INTC) swung to a second-quarter profit as it reported its best quarter ever on a continued strong rebound in demand.
The world's largest chip maker's results topped expectations and it forecast third-quarter revenue of $11.2 billion to $12 billion, while analysts on average estimated $10.92 billion, according to a poll by Thomson Reuters. Intel also predicted gross margin of 65% to 69%, compared with analysts' average estimate of 64.4%.
"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Chief Executive Paul Otellini.
Shares were at $20.99, down 2 cents, in after-hours trading.
Intel, which makes the chips that run about 80% of the world's computers, has benefited from the strong rebound in demand for personal computers and other electronic devices after a sharp drop during the recession a year ago. The company also has seen improved sales of server chips, which have higher prices and margins, as businesses upgrade their technology. But some analysts worry that demand is slowing amid economic uncertainty in Europe and the U.S.
Intel reported a profit of $2.89 billion, or 51 cents a share, compared with a year-earlier loss of $398 million, or 7 cents a share, which included a $1.45 billion antitrust fine from the European Union. Analysts estimated a 43-cent profit.
Revenue climbed 34% to $10.77 billion. In April, Intel forecast $9.8 billion to $10.6 billion, above analysts' then-estimate.
Intel's closely watched gross margin rose to a record 67% from 50.8%, above its guidance. The stock typically has followed the movement of gross margins.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com |
