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: Struggling BlackBerry announces new round of layoffs

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

Uber drivers fined in Hungary

7 hours ago

The Hungarian tax authority fined Uber drivers in its first probe against the ride-sharing service which the economy ministry said Saturday "ignores passenger safety" and must be made to follow regulations.

Domino's taking orders via tweet

May 22, 2015

Domino's on Wednesday launched perhaps the easiest way to satisfy a pizza craving this side of mind reading: order by tweet.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.