Intel's Results, Above Estimates, May Help Calm Shaken Markets
March 28, 2011
Intel Corp. reported record second quarter earnings late Tuesday, a bulletin from the dominant maker of microprocessors that could quell stock-market uneasiness about the technology sector. The Santa Clara, Calif., computer giant reported earnings of $1.04 billion, or $1.17 per share for the second quarter, compared with $879 million, or 99 cents per share a year ago. Analysts had predicted Intel's earnings would hit just $1.09 per share. Intel said its latest earnings set a record on an 18% rise from year-ago levels, and that net income exceeded $1 billion for the first time ever. Intel also set new records for unit shipments of microprocessors and related chip sets in the quarter, facts which suggest that demand for high-performance personal computers is ''fundamentally healthy,'' the company said. The results were released after the close of trading Tuesday -- a wild session that saw the Dow Jones Industrial Average fall as much as 160 points before righting itself to finish in positive territory. The technology-laden Nasdaq Composite Index gyrated as well, and at its worst it was off nearly 52 points, although it ended the day with just a modest loss. Technology shares have led the broader market sharply lower recently, and Intel's results for the quarter had the potential to send prices reeling again if they had come in short of expectations. After rising 87.5 cents in Nasdaq Stock Market trading during the day Tuesday, Intel's shares gained $1.75 in after-hours trading to $71.75 according to Instinet, a unit of Reuters Holdings PLC.
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