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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (180843)	4/19/2005 3:52:49 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 186894

Intel Shares Rise on 1Q Report Expectations Tuesday April 19, 3:44 pm ET By Joe Bel Bruno, AP Business Writer Intel Shares Rise on Expectations 1Q Report Will Show Double-Digit Percent Gain in Profit NEW YORK (AP) -- Intel Corp. shares rose Tuesday ahead of expectations the world's largest maker of computer chips will report a double-digit percent gain in profit when it posts its first-quarter results after the market closes. The Santa Clara, Calif.-based technology leader said last month that stronger-than-expected demand for its chips and lower startup costs associated with new technology will drive earnings during the period. The company raised its sales forecast during a mid-quarter report to between $9.2 billion and $9.4 billion, from a January forecast of sales of $8.8 billion to $9.4 billion. Analysts surveyed by Thomson Financial expect Intel to report earnings of 31 cents per share on revenue of $9.31 billion. Last year, Intel reported earnings of 26 cents per share on sales of $8.09 billion. Intel also told Wall Street that its gross margin -- the difference between sales and the cost of the products sold -- is expected to be about 57 percent plus or minus a point, compared with the previous forecast of 55 percent plus or minus "a couple points." Analysts say they will be closely watching to see how much demand has picked up so far this year. Chip makers have been slowly clawing their way back from lower sales and higher inventory levels that plagued the industry in 2004. "We want to see if demand has continued to pick up during the first few months of the year, especially for chips used in laptops," said Michael Patterson, an analyst with San Francisco-based BPC Investors, in an interview. "And, of course, how are they going to fend off competition from AMD and Texas Instruments." The company's sales are seen rising on higher corporate spending as corporations add more desktop computers and servers. Intel is also currently benefiting from an environment in which manufacturing costs have declined, while prices for its chips have increased. Last month, Intel Chief Financial Officer Andy Bryant said demand for the company's chips was better than expected around the world. Still, he said the financial performance was in line with historical patterns. "Our outlook anticipates a seasonal quarter toward the better end of our forecasts," Bryant said. A strong showing from Intel might also bode well for the rest of the semiconductor industry, which has been slumping since last year. Investors have already heard from Texas Instruments, the world's third-largest chip maker. The company reported Monday that earnings increased 12 percent year-over-year on flat revenue, as demand for educational and sensor products offset a slower sales environment. The Philadelphia Semiconductor Index -- which tracks the performance of 20 chip makers -- rose 6.67 points to 392.52. The index has slowly recovered from its 52-week low of 350.91 points set in September, and is well below the 490.5 high set last May. Shares of Intel rose 40 cents to $22.61 in afternoon trading on the Nasdaq, while Texas Instruments shares climbed $1.25, or 5.5 percent, to $24.17 on the New York Stock Exchange. Advanced Micro Devices Inc. stock rose 4 cents to $15.32 on the NYSE.