Intel lifts revenue forecasts on business PC sales

Jun 12, 2014

Intel on Thursday raised its revenue guidance, saying sales of computers for businesses have been stronger than expected.

The world's largest chipmaker is now forecasting of $13.4 billion to $14 billion in the second quarter. The Santa Clara, California, company had expected $12.5 billion to $13.5 billion in revenue in the quarter. Intel also expects stronger profit margins.

It also said it expects revenue to grow in 2014. In January, Intel said its sales would be about the same as last year's total of $52.71 billion.

Analysts were forecasting $13.02 billion in revenue for Intel during the second quarter, according to FactSet. Their projections called for $53.07 billion in annual revenue.

Intel's shares rose $1.34, or 4.8 percent, to $29.30 in aftermarket trading. That put the stock on pace for a possible two-year high on Friday.

Intel's processors are inside about 80 percent of the world's PCs, and its results are often a bellwether for other chip companies. But its historically strong business of selling chips for personal computers has languished as people buy smartphones and tablets instead of PCs.

Intel said revenue from its PC business fell during the first quarter, but there were signs the slump was easing. The retirement of Microsoft Corp.'s Windows XP operating system may have helped those sales as PC users upgrade to newer systems.

Intel is scheduled to report its second-quarter results on July 15. Analysts expect it to report a profit of 46 cents per share.

Shares of Intel rose 3 cents to $27.96 on Thursday before the release of the forecast. The stock reached an annual high of $28.42 on Monday but has not traded at $29 since May 2012.

Explore further: Intel 4Q net income rises 6 pct (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Intel 4Q net income rises 6 pct (Update)

Jan 16, 2014

Intel's fourth-quarter net income rose 6 percent, as the company offset flat demand for its personal computer chips with higher sales of other products.

Intel 4Q profit down, beats Street (Update)

Jan 17, 2013

Intel Corp., the world's largest chipmaker, on Thursday said its fourth-quarter net income fell 27 percent from the previous year, as PC sales continued to weaken.

Recommended for you

Turner channels removed from Dish amid pact spat

12 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

13 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

21 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0