Thread,
Here goes the Reuter version of Intel serenades.
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Intel shares surge to another record on sales optimism
By Duncan Martell
PALO ALTO, Calif., Nov 19 (Reuters) - Shares of Intel Corp.
INTC.O, the world's largest chipmaker, surged on Thursday to
yet another record, fueled by optimism that sales for the first
half of next year will be stronger than expected.
The stock was up $5 at $114.875 in afternoon trading of
more than 18 million shares, making it the second most active
issue on the Nasdaq. Earlier, the stock touched a record
$115.19.
Following a bullish meeting last week with financial
analysts in which Intel executives laid out an aggressive
rollout of new microprocessors and reported continuing sucess
in cutting costs, many Wall Street analysts have raised their
earnings estimates for the fourth quarter and for next year.
Intel is benefiting from a rebound in demand for personal
computers -- which was sorely lower than expected in the first
half of the year -- as well as from its forthcoming Katmai chip
to power high-end PCs, which is due out in the first quarter.
"There's a growing realization that business and their
competitive position have improved," said Stephen Dube, an
analyst at Wasserstein Perella Securities in New York.
Also on Thursday, Intel and Neon Technology Inc., a maker
of Internet appliances, said they had developed a set-top box
for televisions that gives users a high-speed connection to the
Internet using new, faster transmission technologies.
Analysts said there was an increasing likelihood that large
corporate customers would accelerate their purchase of PCs in
the first half of 1999 ahead of the year 2000.
"Because of the Year 2000 bug, large companies want to get
all their ducks in a row before the second half of the year,"
said David Wu, an analyst at ABN Amro Chicago Corp. in San
Francisco. "Intel's going to have a stronger first quarter than
initially thought."
He said he was raising his fourth-quarter earnings forecast
to $1.10 a diluted share from $1.08 and his first quarter 1999
estimate to $1.15 from $1.08. In the fourth quarter of 1997,
Intel earned $1.7 billion, or 98 cents a share, on revenues of
$6.5 billion.
Santa Clara, Calif.-based Intel is expected to earn $1.05 a
share in the fourth quarter and 98 cents a share in the first
quarter, according to research firm First Call Corp.
Earlier this month, Intel said its sales would beat
expectations again in the latest quarter, showing there was
still plenty of room for growth at the 30-year-old chipmaker.
Intel, which has 80 percent of the market for the chips
that serve as the brains of personal computers, said
fourth-quarter revenues would be 8 percent to 10 percent higher
than the third quarter's $6.7 billion.
In addition, Wu said, there are now signs that results in
the normally sluggish first quarter could be higher than the
fourth, a reversal of the usual trend.
"It's increasingly likely Intel will have a first quarter
that's better than the fourth, because of the Katmai release
and new products from PC makers after Christmas," Wu said,
adding that the Katmai chip is due to be announced Feb.28.
Intel stock has surged 61 percent from $71.19 on Aug. 31.
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Ibexx
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