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: greg s who wrote (66456)	10/13/1998 5:29:00 PM
From: Dale J.	Read Replies (1) \| Respond to of 186894

Intel blows past estimates Strong PC demand, new products result in 3Q profit of 89 cents a share NEW YORK (CNNfn) - Intel Corp. Monday reported third-quarter earnings far ahead of Wall Street estimates as strong demand for PCs and new product lines provided a 9-percent boost to its revenue. The Santa Clara, Calif.-based chipmaker reported a profit of $1.6 billion, or 89 cents a share, on $6.7 billion. First Call estimates called for the company to earn 80 cents a share in the quarter. That figure also beat the so-called "whisper number" of 84 cents a share by a wide margin. Intel reported a profit of $1.57 billion, or 88 cents a share, on $6.2 billion in revenue in the year-ago period. In September, Intel surprised Wall Street by telling investors it expected a boost in third-quarter revenues because of better-than-anticipated demand in North America and Europe. That news caused analysts to revise their forecasts up from 73 cents a share. "We had growth across nearly all of our geographies and product lines, including strong microprocessor sales," said Craig Barrett, Intel president and chief executive officer. "In the third quarter, the PC industry recovered from its inventory problems and is benefiting from strong seasonal demand." Barrett also noted the strong performance of Intel's new Pentium Xeon processors for workstations and servers, and the Celeron chip for consumer PCs as contributing factors. Despite expectations of the strong report, Intel (INTC) shares fell 1-7/8 to close at 83-9/16 as investors expressed worries over what type of guidance the company would give for the following quarters. "The September quarter is a seasonally improving quarter because of back-to-school and holiday sales," said Greg Mischou, an analyst at Warburg Dillon Read. "Now people are starting to think, 'Does the momentum continue in the PC business? What is Intel's guidance going to be for sequential growth?' " In its statement, Intel said it expects revenue for the fourth quarter -- traditionally the strongest period of the year - to be up slightly from the $6.7 billion reported in the third quarter. In a move that could hurt chip equipment maker stocks on Wednesday, Intel said it now expects its capital spending budget to come in at $4.2 billion in 1998, down from the previous estimate of $4.5 billion to $4.7 billion. Separately, Intel announced it increased its quarterly dividend to 4 cents a share from 3 cents a share.