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Intel Sees Strong Q4 After Beating Q3 Estimates

Intel Corp. trounced analysts’ average revenue and profit forecasts in the third quarter and forecasts healthy growth for the current quarter, casting doubts on expectations of a year-end slowdown already announced by some observers.

The world’s No. 1 semiconductor vendor by revenue said it sees fourth quarter revenue rising to $11.4 billion, “plus or minus $400 million.” Even the low end of the new estimate would represent an increase from the $10.6 billion posted by the company in the December 2009 quarter.

Net income in the just ended quarter rose to $3 billion, or 52 cents per diluted share, higher than the 50 cents per share average estimate from analysts, and 59 percent above the $1.86 billion, it reported in the third quarter of 2009. Revenue rose to a record $11.1 billion, up 18 percent from $9.4 billion in the comparable 2009 quarter and representing the first time the company’s sales climbed above $11 billion, according to company executives.

“Intel’s third-quarter results set all-time records for revenue and operating income,” said Paul Otellini, president and CEO of Intel in a statement. “These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets. Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next-generation processor.”

For Intel’s full report click here

2 comments on “Intel Sees Strong Q4 After Beating Q3 Estimates

  1. Hawk
    October 12, 2010

    Don't you just love it when a single company takes the “wring” out of handwringing. Only a few months after saying the semiconductor market will grow 30-plus percent in 2010, analysts have dampened their enthusiasm for the expansion and were predicting a fall-off in demand in the fourth quarter. And now, Intel is sending strong signals the industry growth will continue at least through the fourth quarter. If Intel is right, the analysts will soon be reviewing their forecasts again, this time upward, but how can a company's management ever rely on such rapidly changing predictions?

  2. itguyphil
    October 15, 2010

    I think 30% was a real stretch. I've learned that when it comes to company's 'estimates', err on the side of common sense. They predict these results to build confidence and excitement. I have a simple model in my mind:

    If the prediction is half correct (In Intel's case 15%), would that bridge the same enthusiasm? If yes, buy. If no, wait.

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