Intel shares get a boost from stronger-than expected 2Q results, outlook
By APWednesday, July 14, 2010
Ahead of the Bell: Intel shares jump
NEW YORK — Intel Corp.’s shares got a boost in premarket trading Wednesday after the world’s largest chip maker posted stronger-than-expected results for its second quarter, boosted by an uptick in technology spending as companies emerge from the economic slump.
Intel also raised its guidance for the third quarter. Its net income of $2.89 billion, up from a loss a year earlier, topped $2.5 billion for the first time since 2000, the midst of the dot-com boom.
FBR Capital Markets analyst Craig Berger said quarter’s results were “stellar” and that they “meaningfully beat Street estimates and were new company records for revenues, gross margins, operating margins, profits, and revenues per employee.”
Intel’s revenue guidance for the current quarter was “stronger than most investors dreamed possible as seasonally stronger consumer and ramping corporate and server shipments drive growth,” he added.
Berger kept a “Market Perform” rating on Intel’s shares but raised his target price to $32 from $30.
Jefferies analyst Adam Benjamin called the Intel’s outlook a “blowout” but added that the company will likely face slowing desktop PC growth and pricing pressures due to a continued shift to lower-end laptops. The analyst rates Intel “Underperform” and has a target price of $19 on the shares.
Shares of the Santa Clara, Calif.-based company rose $1.32, or 6.3 percent, to $22.36 in premarket trading. The shares closed at $21.01 on Tuesday.
