SAN FRANCISCO (MarketWatch) - Intel Corp. (INTC:Intel Corporation News, chart, profile, more Last: 15.93-1.06-6.24%
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: INTC 15.93, -1.06, -6.2%) on Tuesday reported a third-quarter net income of $2 billion, or 35 cents a share, compared with net profit of $1.8 billion, or 30 cents a share, for the year-earlier period. Revenue was $10.22 billion, up 1% from $10.1 billion last year. Analysts had expected the company to report earnings of 34 cents a share on revenue of $10.25 billion, according to a consensus survey by FactSet Research.
: Der Ausblick war besser als erwartet denk ich
AP Intel expects profits to hold up in 4Q Wednesday October 15, 12:06 am ET By Jordan Robertson, AP Technology Writer Intel forecast of steady 4Q profits in uncertain economy helps buoy stock
SAN JOSE, Calif. (AP) -- Intel Corp. has provided some insight into the state of global PC demand, telling Wall Street that while technology spending may be slumping, the chip maker fully expects its profits to hold steady. ADVERTISEMENT
The Santa Clara-based company, the world's largest maker of PC microprocessors, said Tuesday that its third-quarter profit rose 12 percent, beating analysts' estimates by a penny per share.
The increase was driven in large part by technological advances that lower Intel's cost of making each chip, which helps the company wring out more profits even in tough economic times.
Sales, in fact, rose just 1 percent, helped by a 20 percent jump in revenues from laptop microprocessors, but were held down overall by lower sales of desktop and server microprocessors. Intel missed the consensus revenue estimate by about $40 million.
Wall Street was already expecting that Intel's third-quarter results would be in line with analyst forecasts, since a spending freeze by many corporate information technology departments didn't fully emerge until late in the quarter, when the financial crisis worsened dramatically.
As the first major tech company to report earnings for the July-September period, investors were looking to Intel for signs about the health of the overall sector heading into the holiday season and 2009.
Intel's processors are used in around 80 percent of the world's PCs and servers built with PCs, so swings in demand for those chips are valuable indicators about order volumes for the rest of the PC industry.
Intel cautioned that economic turbulence makes it hard to reliably predict fourth-quarter results. But the company still forecast healthy and relatively unchanged profit margins.
That was seen as a sign things might not get as bad as some market-watchers fear.
Intel shares climbed 65 cents, 4.1 percent, to $16.58 in after-hours trading. They had closed down $1.06, 6.2 percent, at $15.93 during the regular session before Intel reported its results.
Intel's net income for the three months ended Sept. 27 was $2.01 billion, or 35 cents per share. That compares with $1.79 billion, or 30 cents per share, from the year-ago period.
Analysts surveyed by Thomson Reuters expected 34 cents per share in profit.
Sales were $10.22 billion, just a 1 percent increase over last year, but Intel said the figure was a record for the third quarter. Analysts expected $10.26 billion.
Stacy Smith, Intel's chief financial officer, said because of the economic uncertainty, Intel plans to update investors in early December, ahead of the formal fourth-quarter report, about the company's finances.
"We have a high degree of uncertainty around demand in the fourth quarter, but our execution is good," he said in an interview.
Lower manufacturing costs helped Intel increase its gross profit margin by 3.5 percentage points from 55.4 percent of revenues in the second quarter to 58.9 percent of revenues in the third. Gross margin measures how much money a company makes on each dollar of revenue once manufacturing costs are stripped out.
While Intel is thriving, its smaller rival, Advanced Micro Devices Inc., is planning to spin off its chip-making factories to cut costs. AMD announced last week that it's partnering with the Persian Gulf state of Abu Dhabi in the joint venture.
The deal is an acknowledgment that AMD can't compete alone against Intel in the very expensive chore of semiconductor manufacturing.
AMD reports its third-quarter results on Thursday. Analysts are expecting a loss of 40 cents per share on $1.48 billion in sales.
Intel Chief Executive Paul Otellini warned that it's "hard to know" what impact the financial crisis will have on demand for Intel's chips in the fourth quarter. Still, Otellini said he expects Intel to "outpace peer companies" during the period because of its sales momentum and strong products and balance sheet.
Intel predicted a gross profit margin of 59 percent of revenues, plus or minus a couple of percentage points in the fourth quarter.
Sales, however, could come in below the range of estimates offered by Wall Street analysts. Intel expects sales of between $10.1 billion and $10.9 billion. Analysts were expecting sales in the range of $10.4 billion and $11.3 billion.
aber jetzt sind sie wieder da. Fragt sich nur, wie lange.
Diese Meldung könnte der Grund für die exorbitante Kursexplosion sein:
Traders seized on a chance to get into U.S. stocks at bargain prices Tuesday. The major averages surged in the afternoon as investors brushed off a dismal report on consumer confidence that may have bad implications for the holiday shopping season.
The Dow Jones industrial average sprinted into the finish to gain 889 points, or 10.9%, to 9,065. The S&P 500 jumped 92 points, or 10.8%, to 941; and the Nasdaq soared 144 points, or 9.5%, to 1,649.
All eyes shift to the Federal Reserve on Wednesday, as the central bank wraps up its two-day meeting with a 2 p.m. policy statement. Market watchers expect the Fed to slash the federal funds rate by another half percentage point, cutting the benchmark rate to 1.0%. Early Tuesday reports surfaced that the Bank of Japan is considering a similar move, and may cut its own benchmark rate by a quarter point, news that sent the yen reeling against the dollar. The greenback was worth 97.96 yen Tuesday afternoon, up from 93.58 late Monday.
In addition to Fed-watching, investors also have their focus on the banking sector, as the Treasury Department begins to inject capital into individual firms. The initial investments are being doled out this week, and observers are waiting to see how the banks will spend the scratch. White House spokeswoman Dana Perino said the government hopes the banks use the fresh capital to ramp up lending, but the banks could hoard the cash or use it to buy cheap and acquire weakened competitors.
Late Tuesday, there were reports that the Treasury is considering expanding its Troubled Asset Relief Program to include private banks, according to TradeTheNews.com, which would make funds available to thousands of additional institutions. The Financial Select Sector SPDR (amex: XLF - news - people ), an exchange-traded fund that includes several of the firms participating in the TARP, climbed $2.07, or 15.7%, to $15.25 on Tuesday. The SPDR KBE Bank (amex: KBE - news - people ) index fund was up $3.50, or 14.0%, to $28.52.
Target (nyse: TGT - news - people ) will be in the spotlight Wednesday, after its largest investor scheduled a conference call to announce recommendations to boost the retailer's growth. Pershing Square Capital Management, which is run by well-known activist investor William Ackman and controls 10.0% of Target, has seen the value of its holding evaporate in the past several months and could renew calls for the retailer to alter its real estate ownership structure. Shares of Target posted early gains after Pershing set the conference call, before riding the market's explosive afternoon to finish at $38.51, up $5.82, or 17.8%. (See "Ackman Tries To Steady A Moving Target.")