Intel, the world’s largest semiconductor maker, beat predictions for its second-quarter earnings, but forecast third-quarter sales that were lower than analysts had estimated, as an economic slowdown in China erodes demand.
For the second quarter, the company reported per-share earnings of $0.54 on revenue of $13.5 billion and net income of $2.83 billion from $2.95 billion a year earlier. A bit light, as analysts on average had been expecting $13.54 billion and $0.52 a share.
In April, Intel had predicted sales of $13.6 billion, plus or minus $500 million. For the third-quarter outlook, Intel said it sees sales of $14.3 billion, plus or minus $500 million, from $14.2 billion a year earlier.
Analysts had projected higher sales of $14.6 billion. The company also cut its view on the full fiscal year, saying it expects to grow year-on-year in the range of 3% to 5%, down from a “high single digit” expectation given previously.
Intel’s forecast adds to concern that expansion in China is no longer enough to counter an economic slump in Europe and sluggish growth in the U.S. The company, whose chips are in eight out of 10 of the world’s personal computers, had maintained that demand outside the U.S. and Europe would drive sales of PCs as more consumers in developing nations become able to buy their first machines.
from www.amp2012.com July 18
- Intel Cuts Revenue Forecast (intc) (businessinsider.com)
- Apple CEO wants to make less products in China (chinadailymail.com)
- Intel’s Sales Forecast Misses Some Analysts’ Estimates – Bloomberg (bloomberg.com)