Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Anthony Wong who wrote (64442)	9/11/1998 9:28:00 AM
From: Anthony Wong	Read Replies (1) \| Respond to of 186894

Intel Shares Climb on Better-Than-Expected Forecast (Update1) Santa Clara, California, Sept. 11 (Bloomberg) -- Intel Corp. shares rose as much as 6.2 percent after the world's largest computer-chip maker said third-quarter sales will be about 10 percent higher than the second quarter's $5.9 billion. Intel rose as much as 4 15/16 to 84 before regular Nasdaq Stock Market trading. Intel also gained in European markets. Intel attributed the sales increase to stronger-than-expected demand in North America and Europe. The forecast is a change from earlier predictions that sales would be unchanged or slightly higher, and as the first sign of a rebound in demand for personal computers, is expected to boost technology stocks. ''Intel is a bellwether not just for the semiconductor industry but for technology in general,'' said analyst Scott Nirenberski of CS First Boston. ''Investors will be positively inclined.'' In Germany, Intel rose 4.5 deutsche marks, or 3.3 percent, to 139.5 marks. In Switzerland, shares rose 4 Swiss francs, or 3.6 percent, to 114.75 francs. The shares climbed 3 9/16, or 4.5 percent, to 82 5/8 in London, according to Madoff Securities International Ltd In the year-ago quarter, Intel reported earnings of $1.57 billion, or 88 cents a share, on sales of $6.15 billion. The average estimate of 31 analysts for the third quarter is 73 cents, according to First Call Corp. Demand Intel had been struggling with weak PC demand for most of this year. PC makers built too many machines late last year and had to slash prices to clear out excess inventory. Now, Intel has faster Celeron chips for inexpensive home PCs, and computer makers are starting to replenish warehouse shelves in anticipation of holiday sales. Intel is being helped now by a number of factors. Customers are buying computers to upgrade to Microsoft Corp.'s new Windows 98 operating system. Compaq Computer Corp., International Business Machines Corp. and others have new machines on the market. Also, the glut of inventory at some PC makers, notably Compaq and Hewlett-Packard Co., has diminished, and those companies have stepped up chip purchases. ''The PC vendors' business is strong, and they are starting to buy at normal rates again,'' said analyst Dan Niles of Robertson Stephens, who rates the stock ''strong buy'' and expects per-share earnings of 80 cents in the third quarter. Earnings estimates for the quarter have risen as speculation about a strong performance mounts. Four of the five profit estimates that changed for Intel in August rose, according to First Call. Intel said it will report third-quarter results on Oct. 13 Intel said its gross margin, or the percentage of sales that remains after costs of production are subtracted, will widen from the 49 percent reported in the second quarter. The gross margin expectation includes write-offs for job cuts and cost reductions in manufacturing.