SAN FRANCISCO (Reuters) - Intel Corp reported quarterly revenue ahead of Wall Street targets and forecast current-quarter revenue ahead of expectations, sending shares up slightly.
Shares rose 1.8 percent to $21.86 from a close of $21.48 on Nasdaq.
PATRICK WANG, ANALYST, WEDBUSH MORGAN SECURITIES
“Intel delivered a very clean beat and raise on the quarter. They’re giving us reassurance that the PC sector remains intact and more importantly that we’re seeing incremental improvements in the economy and that we’re probably well on our way to recovery.
“What they did on the gross margin line was extremely impressive, which was due to the massive upside in revenue, which leverages itself on the gross margin line.
“Big picture is that tech remains investable.”
DOUG FREEDMAN, ANALYST, BROADPOINT AMTECH
“These were very positive results. They did a nice job on the topline which exceeded our expectations, the gross margins better than we had even expected. Looking forward we’re encouraged by the low capital spending and the projection that gross margin would continue to operate within a very tight range.
“I would even argue that their gross margin guidance going forward is going to probably prove conservative. They invested through the downturn and the PC sector was very resilient to the financial crisis. We really saw consumers jump at the opportunity to buy hardware at what ended up being lower prices.”
DAVID KANTER, ANALYST, REAL WORLD TECHNOLOGIES
“It’s definitely positive for the overall tech market.
“Intel to a large extent tells you the health of the PC and computer market and that drives a tremendous amount of other activity including analog semiconductors, and other people who fit into that ecosystem that are slightly less integral and more of a complement to the PC chip.”
MARC PADO, U.S. MARKET STRATEGIST, CANTOR FITZGERALD & CO., SAN FRANCISCO:
“When you look at gross revenues, a beat. Net is a beat. But the one thing I have been pushing, is watch that gross margin. Are companies able to produce more with less and increase their gross margins? For Intel this is a record for a quarter.
“The fact that they are pushing gross margins for a seasonally weak first quarter, guiding to a 61 percent gross margin, that’s a huge number, very impressive. The stock is obviously reacting, but the market as a whole should react to this number.
“It tells you a lot about what companies are capable of doing post-recession. Lean and mean. Low inventories, higher productivity, higher profit margins. Even on flat revenues companies are going to make money. That’s the coattail that Intel is going to have for everybody tomorrow.”
Reporting by Ellis Mnyandu, Yinka Adegoke and Ritsuko Ando in New York; Compiled by Peter Henderson
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