A little optomistic news to chew on while waiting for tomorrows earnings.
Cheers, Chris
Intel Outlook -2: 2Q Sales In Japan Up From 1Q
Intel's more upbeat outlook, coupled with an improved earnings report from Seagate Technology Inc. (SEG) and favorable financial numbers expected before market open from Compaq Computer Corp. (CPQ), should lift technology stocks tomorrow, analysts said.
On a conference call with analysts, Intel's Bryant said computer manufacturers made progress during the quarter reducing bloated inventories at distributors. Still, Intel said its quarterly product shipments declined slightly from the first quarter and the company's share of the market dropped "marginally" because of competition in the low-priced category of computers.
However, sales in Japan grew from the first quarter. The company also said it wouldn't quarrel with estimates that the worldwide PC market would grow by a percentage in the "low to mid teens" this year.
BancAmerica Robertson Stephens analyst Dan Niles called the company's gross margin outlook good news and predicted the gross margin could climb to 53.5% in the fourth quarter.
"It's the first time they've said margins will be up" since early 1997, he said.
-By Mark Boslet; 650 496-1366
"Dow Jones News Service"
"Copyright(c) 1998, Dow Jones & Company, Inc." |
