Intel Profit, Sales Beat Street
Posting third-quarter results Tuesday, Intel (INTC) said it earned 35 cents a share on revenue of $9.39 billion. That’s not quite what the company reported during the same period last year, when it saw earnings of 35 cents a share on revenue of $10.2 billion. But it’s much better than investors had been hoping for. Analysts had expected Intel to report earnings of 28 cents a share on revenue of $9 billion, according to a consensus survey by FactSet Research.
Not bad. Even better, the company bumped up its fourth-quarter guidance from sales of $9.7 billion to sales $10.6 billion. Consensus estimates have been calling for sales of $9.5 billion, according to FactSet Research data.
Intel’s rosier Q4 guidance suggests that the slow increase in end-market demand for PCs we’ve been seeing lately isn’t simply inventory refill but reflects an upswing in demand for end-customer goods. Perhaps that turnaround CEO Paul Otellini has been heralding for the last half year is not as far off as it might seem.
“Intel’s strong third-quarter results underscore that computing is essential to people’s lives, proving the importance of technology innovation in leading an economic recovery,” Intel CEO Paul Otellini said in an earnings release. “This momentum in the current economic climate, plus our product leadership, gives us confidence about our business prospects going forward.”