(Adds analyst's view on EPS, updates stock)
By Noel Randewich
SAN FRANCISCO, June 12 Chipmaker Intel Corp
on Thursday raised its outlook for the second quarter
and the full year, citing stronger-than-expected demand for
personal computers used by businesses.
Shares of Intel jumped more than 4 percent in extended trade
as the chipmaker's improved forecast lifted hopes for a PC
industry that been shrinking due to consumers' preferences for
tablets and smartphones.
Intel said it now expects second-quarter revenue of $13.7
billion, plus or minus $300 million. Intel had previously
forecast revenue of $13 billion, plus or minus $500 million.
The chipmaker said it expects "some" revenue growth for the
full year, compared with its previous forecast of flat revenue.
The Santa Clara, California company also raised the
mid-point of its gross margin forecast range for the second
quarter, which ends at the end of June, by 1 point to 64
With personal computer shipments falling for eight straight
quarters through March, some analysts have suggested the
industry's decline is close to hitting bottom, potentially
giving Intel breathing room as it struggles to develop better
processors for mobile and wearable devices.
Demand from companies for PCs likely received a boost
recently due to Microsoft's winding down of support in
April for its Windows XP operating system, analysts say.
"PCs have been getting less bad for a while," said Bernstein
analyst Stacy Rasgon. "But if it's all business PCs then the
question is going to be sustainability."
Intel's revised revenue and gross margin forecasts for the
June quarter could translate to earnings per share of 52 cents,
RBC analyst Doug Freedman said in a note to clients.
For the second quarter, analysts on average had expected EPS
of 47 cents and revenue of $13.02 billion, according to Thomson
Intel is expected to report its second-quarter results on
Shares of Intel jumped 4.97 percent in extended trade after
closing up 0.11 percent at $27.96 on Nasdaq.
(Reporting by Noel Randewich; Editing by Cynthia Osterman)