Intel's 4Q View Seen As Bullish Sign For PC Mkt ...Here is something to start the fire to broil the bruins
NEW YORK (Dow Jones)--Intel Corp. (INTC) said its fourth-quarter sales should be higher than expected, giving a bullish indication of how the PC market is faring.
"Business has been getting better," said Dan Niles, an analyst at BancBoston Robertson Stephens. "I think this is the earliest they've ever pre-announced" better-than-expected sales.
The world's largest semiconductor maker said Wednesday afternoon that demand was stronger than expected for PCs "across all market segments and in all geographies."
The news sent Intel shares up in after-hours trading to 100 1/4, up from the close of 97 9/16. The stock has touched or beaten 52-week highs Friday, Monday and again on Tuesday.
Intel said it expects sales to rise 8% to 10% from the $6.7 billion in sales during the third quarter. That would put revenue roughly in the range of $7.2 and $7.4 billion, compared with $6.5 billion in the same period a year ago.
The company made a similar announcement in the third quarter, only to perform better than that. But the company was cautious in the guidance it gave to Wall Street about the current quarter, which is usually its strongest.
"Intel is always cautious," Niles said.
Earlier Wednesday, several firms made positive comments about Intel stock, including Morgan Stanley Dean Witter and BT Alex Brown.
"The fourth quarter is going real well," said Erika Klauer, an analyst at BT Alex Brown who raised her investment opinion on Intel to a "strong buy" Wednesday.
Intel's View-2: Analyst Says Co Is Finally 'Clicking'
Mark Edelstone, an analyst at Morgan Stanley Dean Witter, said the company is 'clicking' in a way it hasn't for almost two years.
"The third quarter was their breakout quarter," Edelstone said. "They had basically been going nowhere ... for six quarters."
Edelstone raised his price target on to $120 a share from $110 a share earlier Wednesday. "I think Intel stock goes higher," he said.
Intel is in the middle of the strongest period for PC sales. The Christmas season helps consumer sales of PCs, and large corporations tend to buy computers at the end of the year or lose their budgets.
But Edelstone noted that Intel is also benefitting from the uptick in demand after the severe inventory bloat in the PC business in the first half of 1998.
- Christopher Grimes; 201-938-5253 |
