Intel Investors - Intel "Officially denies" any plans for a profit warning
Here' the article.
Paul
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!http://cbs.marketwatch.com/archive/19990310/news/current/intc.htx?source=blq/yhoo&dist=yhoo
Intel bounces off profit worry Chip giant has 'no plans now' to issue warning
By Tiare Rath, CBS MarketWatch Last Update: 12:41 PM ET Mar 10, 1999 Tech Report
SANTA CLARA, Calif. (CBS.MW) -- Intel's stock recovered some of its losses Wednesday as investors shrugged off speculation the world's largest chip-maker was about to issue a first-quarter earnings warning.
An Intel spokesman told CBS.MarketWatch.com the company currently doesn't intend to release guidance for its first quarter. "There's no plan right now to do anything in that regard," said spokesman Larry Bozman.
Shares of Intel (INTC) rose 2 to 117 5/16 on volume of nearly 18 million, On Tuesday, the stock dropped 3.6 percent on reports it could release a first-quarter earnings warning.
To be sure, the stock has had a rocky first quarter as analysts have expressed concern about the company's growth.
Donaldson, Lufkin & Jenrette cut its 1999 and 2000 Intel profit estimate in early March, citing potential for softness in the chip market. DLJ said first-quarter demand for personal computers in the corporate market hasn't been "as robust as earlier indications had suggested."
On Wednesday, however, analyst Erika Klauer at BT Alex. Brown said that, apart from speculation to the contrary, she's seen no indication Intel is about to warn Wall Street to revise its earnings expectations for its first quarter.
Intel told analysts early on in its first quarter that revenue gross margins will decline slightly from its fourth quarter, she said. But, Klauer added, "I don't think it's anything to get alarmed about."
Analysts first-quarter profit expectations are between $1.07 a share and $1.10 a share, and Klauer anticipates the company will record a profit in that range. The company is projected to earn $1.10 vs. 81 cents the same period a year ago, according to the consensus estimate among 32 analysts surveyed First Call
Klauer also said Intel will likely benefit from Advanced Micro Devices' (AMD) woes and will grab market share from its rival as AMD faces production problems. Tuesday, Advanced Micro Devices said it's expecting a "significant" loss in its first quarter. Shares of AMD fell 5/16 to 17 3/16 in late-session trading. See related story. |
