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Intel sales forecast tops analysts’ estimates as PC demand grows

Bloomberg News

Intel Corp. forecast second-quarter sales that topped analysts’ predictions, indicating that demand for personal computers remains strong.

Sales will be $10.2 billion, plus or minus $400 million, the company said Tuesday in its quarterly earnings statement. Analysts in a Bloomberg survey had estimated $9.72 billion on average.

The forecast follows record first-quarter sales, fueled by consumers ordering laptops. Demand is expected to increase further in the second half as more businesses upgrade their computer networks -- something they were slow to do during the recession.

Intel shares rose 23 cents, or 1%, to $22.77 before the earnings news. The shares have gained 12% this year.

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First-quarter net income climbed to $2.44 billion, or 43 cents a share, from $629 million, or 11 cents, a year earlier. Analysts had projected 38 cents a share. Revenue increased 44% to $10.3 billion, compared with the average estimate of $9.85 billion.

Intel leads off two weeks of earnings reports by the largest U.S. technology companies, including IBM Corp., Google Inc. and Microsoft Corp. Intel supplies more than 80% of the world’s PC processors, making its sales a barometer of computer industry demand.


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