No. 1 chipmaker posts better-than-expected 2Q sales and earnings; stock rises after hours.
July 15, 2003: 4:44 PM EDT
NEW YORK (CNN/Money) - Intel Corp. Tuesday reported second-quarter profits doubled from a year ago, narrowly beating analysts' expectations.
The world's biggest semiconductor manufacturer reported net income of $896 million, or 14 cents a share, up from $446 million, or 7 cents a share, a year earlier. According to First Call, analysts had been expecting earnings of 13 cents a share.
The company also reported better-than-expected sales of $6.8 billion, up 7.9 percent from a year ago. Analysts were forecasting revenue of $6.7 billion for the quarter.
Shares of Intel (INTC: Research, Estimates) gained nearly 3.5 percent in after-hours trading to $24.94, according to Island ECN, after edging up 8 cents in regular trading to $24.10. The stock is up 55 percent this year.
In addition to beating analysts' expectations, Intel also announced better-than-anticipated sales guidance for the third quarter. The company said that sales would be in range of $6.9 billion to $7.5 billion. The midpoint of this range -- $7.2 billion -- is higher than Wall Street's consensus estimate of $7.1 billion.
Intel also said that gross margins for the third quarter and full year should be about 54 percent, up from the company's earlier projections of 51 percent. Gross margins, which measure how profitable a company is after subtracting its cost of sales, is a key gauge of performance in the semiconductor industry.
The company does not provide earnings-per-share targets. Analysts are expecting Intel to earn 16 cents a share in the third quarter, but that estimate is likely to rise due to the strong second-quarter performance and positive sales outlook.
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