Intel (INTC) Shares Higher on Revised Guidance

Shares of the Intel Corporation (INTC) were up +1.78 or +6.37 percent to $29.74 per share in pre-market trading on Friday, after the company raised second quarter and full year revenue and gross margin expectations Thursday afternoon. Intel stock closed at $27.96 per share, up +0.03 or +0.11 percent in Thursdayâ s regular trading session.

Santa Clara, California based Intel Corporation is the worldâ s largest maker of semiconductor chips by revenue.
Founded in 1968, the company owns a slew of important patents for microprocessors and processors used in most personal computers including the x86 microprocessor series and the Pentium processor. Intel invented the worldâ s first commercial microprocessor in 1971. In a press release issued yesterday afternoon, the company cited better than expected demand for business PCs and raised its second quarter revenue estimates from $13.0 billion, plus or minus $500 million, to $13.7 billion, plus or minus $300 million. In addition, Intel also raised its mid point for gross margins up one point to 64 percent, plus or minus a couple of percentage points. Intel is now expecting revenue growth, versus a previous outlook for revenue to be about flat. According to the company, the change in the outlook has been in large part due to strong demand for business PCs. Full year gross margins are now expected to be in the upper half of the range of 61 percent plus or minus a few percentage points as previously forecast. Research and development plus MG&A spending was also revised, with costs expecting to be approximately $4.9 billion, versus a previous estimate of approximately $4.8 billion, in large part due to revenue and profit dependent items. The tax rate for the second quarter is expected to rise to 28 percent, versus a previous estimate of 27 percent due to higher profits in higher taxed areas. Full year R&D costs were estimated to $19.2 billion, plus or minus $200 million, versus a previous forecast of $18.9 billion, plus or minus $200 million. The company reported its original guidance for second quarter earnings when they released first quarter earnings on April 15th. Guidance for full year capital spending and depreciation were unchanged with no other guidance from the April 15th earnings release remaining in effect. Results for the second quarter will be released on July 15th, and will not include any asset acquisitions, business combinations, strategic investments, divestitures or any other significant transactions that could take place after June 12. The news of improved PC sales has already affected shares of Microsoft (MSFT), Micron Technologies (MU), Nvidia (NVDA) and Advanced Micro Devices to name a few. The entire sector is showing improvements and will certainly boost the tech heavy Nasdaq index in trading today. Intel stock has been steadily rising since reporting first quarter earnings in April. With todayâ s jump, the stock will open above its yearly high. With the improved forecast and other possible surprises, the companyâ s second quarter earnings results will be closely watched on July 15th. Other News About Intel Is Intel Impossibly Leaky? Author has found 5 revised outlook incidents since 2005. Deutsche Bank Increases Intel Price Target to $35.00 Bank raises price target for INTC from $30. Other Stocks in the News 'Prime Music' brings Amazon a step closer to the center of your world will begin streaming music. BMW and Tesla executives meet to discuss electric cars Meeting of execs in Germany could lead to more charging stations.

Published on Jun 13, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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