INTEL Corp’s quarterly revenue forecasts trumped Wall Street’s expectations, defying investors’ concerns about slowing personal computer sales and buoying its shares.
Doubts about high US unemployment, the risk of a European financial crisis, climbing inventories and sluggish PC sales had clouded the second-half outlook for Intel and other chip makers like Advanced Micro Devices.
But the company, which dominates the PC microchip industry but is struggling in a fast-expanding mobile market, forecast current-quarter revenue of about $14bn, give or take $500m.
Analysts on average had expected Intel's revenue to rise to $13.5bn in the current quarter, less than normal growth for this time of year.
Revenue in the June quarter was $13.1bn, up 22 per cent over the year-ago period and above the $12.8bn expected by analysts.
Non-GAAP net income in the quarter was $3.2bn, up 10 per cent. Non-GAAP earnings per share were 59 cents.
Shares of Intel rose 1.65 per cent to $23.37 in extended trade, after closing down 0.3 per cent.
The firm follows Apple’s blockbuster set of results on Tuesday night, and has set the bar high for sector peers reporting later this week.
City A.M. Reporter