INSTANT VIEW: Intel results beat expectations, shares up

NEW YORK (Reuters) - Intel Corp (INTC.O) posted a 12 percent increase in third-quarter profit as gross margins beat expectations, sending its shares up 8 percent on Tuesday.

While the world's largest chip maker guided lower Wall Street's expectations for revenue in the current quarter, analysts said the move was not as bad as some had feared.

COMMENTARY

SEAN CONNER, SENIOR EQUITY ANALYST, FIRST AMERICAN FUNDS IN

MINNEAPOLIS

"The bottom line is that they did better than expected. Gross margins came in better than people were expecting, for both this quarter and in its outlook for the fourth quarter. For me, this is a relief rally more than anything else."

"Couple of things I'm looking for on the call: they lowered capital expenditure for 2008, the key is what the capex will be for 2009, since it'll affect gross margins. I'm looking for a 2009 outlook."

"As for how Intel shares will perform going forward, tell me how the market will do and I'll tell you how Intel will do. All things being equal, it should outperform the market, but who can tell with this crazy market these days."

ROB BURLESON, ANALYST, CANACCORD ADAMS

"While there will be estimate revisions in this earnings season, it seems they won't be disastrous. Intel's number cut (on fourth quarter revenue) was not that bad. It's definitely a shortfall. The consensus had been for $10.8 billion and now they are guiding more to like $10.5 billion."

MIKE HOLLAND, FUND MANAGER, HOLLAND & CO, WHICH OVERSEES

ASSETS IN EXCESS OF $4 BILLION, INCLUDING INTEL, IBM, APPLE

"They look pretty healthy to me and a little bit of a positive surprise."

"More important to me to some extent is gross margin, which I think people were looking for to come in at 57 percent, came in at 59 percent."

"In this environment, the stock was trading down today basically reflecting the fact that the world is going to be slower in the future. These are numbers that if you have to be somewhere with a slower future, this may not be a bad place to be."

DAVID WU, ANALYST, GLOBAL CROWN CAPITAL