TMCnet Feature Free eNews Subscription
October 17, 2013

Intel's Earnings Beat Estimates

By Tammy Marie Rose, TMCnet Contributing Writer

Computer chipmaker Intel (News - Alert) defied its critics on Tuesday by reporting revenue and earnings that were better than expected.



Intel reported a 49 percent increase in its quarterly profit of $3 billion. These quarterly profits topped Wall Street’s published expectations by close to 10 percent.

The company’s revenue from its personal computer group reached $8.4 billion, which was a 3.5 percent decline from last year. The decline, however, was more than made up for by the 12.2 percent growth in the data center group that makes hardware for corporate servers and massive storage computing.

Intel has been working on turning out efficient chips for power-sipping tablets. This move may determine Intel’s story at the end of the year. Intel states that it expects to have a revenue of between $13.2 billion and $14.2 billion in the current quarter.

Intel CEO Brian Krzanich says, "We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors.”

The company has a slim, if any, growth forecasted for the December quarter, despite the introduction of new PC devices that are using the updated Windows 8.1 operating system that launched in the same time period.

Hans Mosesman of Raymond Jones recently told MarketWatch, “It’s not a bad guide, but it’s not a great guide either. What holds the stock at these levels is the dividend is pretty healthy, and longer-term investors won’t be thrown off by this. There are some structural issues that Intel is going to have to deal with for years to come.”

CEO Krzanich also spoke about the up-coming products in the company’s Bay Trail line of mobile processors. He expects that between 8-10 tablets using Bay Trail processors will be available online and in retail stores by Black Friday (News - Alert).

Intel trimmed its projected capital spending for the full 2013 fiscal year to $10.8 billion compared to the $11 billion that it forecasted in July.




Edited by Alisen Downey
» More TMCnet Feature Articles
Get stories like this delivered straight to your inbox. [Free eNews Subscription]
SHARE THIS ARTICLE

LATEST TMCNET ARTICLES

» More TMCnet Feature Articles