Intel beats forecasts for Q2 with sales of $10.2bn
INTEL, the world's biggest chipmaker with a major plant in Leixlip, forecast second-quarter sales that topped analysts' predictions, indicating that demand for personal computers remains strong.
Sales will be $10.2bn, plus or minus $400m, the company said last night in its quarterly earnings statement. Analysts in a Bloomberg survey had estimated $9.72bn on average.
The forecast follows record first-quarter sales, fuelled by consumers ordering laptops. Demand will increase further in the second half as more businesses upgrade their computer networks - something they were slow to do during the recession - said Hans Mosesmann, a Raymond James & Associates analyst in St Petersburg, Florida.
"We're at the early stages of a demand-driven cycle," said Mosesmann. He has an 'outperform' rating on the stock, which he doesn't own. "Enterprise has been dormant."
Intel rose 23 cents, or 1pc, to $22.77 in late trading on the Nasdaq Stock Market. The shares have gained 12pc this year.
First-quarter net income climbed to $2.44bn, or 43 cents a share, from $629m, or 11 cents, a year earlier. Analysts projected 38 cents a share. Revenue increased 44pc to $10.3bn, compared with the average estimate of $9.85bn.
In January, the Santa Clara, California-based company forecast sales of $9.7bn, plus or minus $400m. It predicted gross margin, or the percentage of sales remaining after deducting the cost of production, would be about 61pc.