Intel Shares Up on First Quarter Forecast
Intel shares went up after the company predicted first-quarter sales to be near the high end of its forecast range.
Intel expects revenue for the first quarter to be between $9.2 billion and $9.4 billion, as compared to the previous range of $8.8 billion to $9.4 billion.
The first-quarter gross margin percentage is expected to be approximately 57 percent, plus or minus a point, as compared to the previous expectation of 55 percent, plus or minus a couple of points, primarily due to lower than expected 65nm start-up costs and microprocessor unit costs. All other expectations are unchanged.
According to a MarketWatch article,
“Although it didn’t issue a profit forecast, the higher sales and margin guidance suggests Intel’s first-quarter earnings will at least meet or perhaps beat Wall Street expectations of 28 cents a share, or 8 percent profit growth.
However, looking toward the second quarter Merrill Lynch analysts told clients they sees gross margin declining as revenue falls seasonally and startup costs rise again.”
“Like many of the companies in our space, Intel has managed to beat low first-quarter expectations. However, hitting full-year targets will be tougher, especially at the gross margin level,” said Merrill.
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