Intel shares jump as earnings overcome estimates 

Intel beats estimates, cites stable PC chip demand

Chip-maker Intel delivered upbeat third-quarter earnings and sent a signal that the personal computer market might be improving.

The company’s net income of $3.32 billion rose 12%, compared with $2.95 billion a year ago, and earnings of 66 cents per share rose 14%. Revenue in the quarter rose 8% to $14.6 billion, beating analysts expectations of $14.4 billion.

And Intel’s fourth quarter revenue forecast of $14.7 billion, surpassed expectations of $14.5 billion. And for the first time, Intel shipped more than 100 million microprocessors in a quarter.

Chips for PCs drove the quarter, accounting for revenue of $9.2 billion, up 9% over last year. “The worldwide PC supply chain appears to be healthy, with inventory levels appropriate in anticipation of the fourth quarter retail cycles,” the company said in a statement to investors.

PCs have lost ground as tablets and phablets — devices that straddle smartphone and tablet sizes — have cut into the laptop and notebook market. But at least for the moment, “PC demand has stabilized following two years of declines. But ultimately there is long-term concerns about Intel,” said Edward Jones technology analyst Bill Kreher. “The company is making very slow progress on its mobile front.”

Intel shares have risen 22% so far this year and were at $32.14 when the market closed Tuesday. After hours trading in Intel shares were up 2%.

Source: Usatoday- Intel shares jump as earnings overcome estimates

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