Intel stock leaps 4.5% afterhours on earnings news
The chip-making giant reported second-quarter earnings after the close on Tuesday.
Here’s what you need to know:
The stock: Shares in the member of the Dow Jones Industrial Average have been near a 10-year high. They bounced 2.2% higher after hours. Update: 4%.
The numbers: Intel earned 55 cents on sales of $13.8 billion. That was higher than forecasts. The median of about three dozen analysts forecast 52 cents a share on sales of $13.69 billion. Remember: Intel had raised its second-quarter sales view in mid-June, citing strong PC demand.
Buybacks: The board is bumping up its stock buybacks by $20 billion and it forecast about $4 billion buybacks in the third quarter.
The outlook: Intel sees $14.4 billion, plus or minus $500 million, in third quarter sales. Meh – the street was expecting $14.02 billion already.
The take-away: Business demand for Intel processors is helping keep investors in this blue-chip, which carries a P/E of about 15.
Source: Usatoday
