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Kevin Kennedy
Send Message Publisher Kevin Kennedy, a veteran of more than 20 years in newspaper journalism and the former mayor of his hometown, was used to trying to find answers to vexing questions when he began working to solve one of the biggest mysteries of all in the mid-1990s: what makes stocks... More
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  • Demand drives Intel to record quarter 0 comments
    Jul 13, 2010 7:49 PM | about stocks: INTC
    Boosted by strong demand from corporate customers for its advanced microprocessor offerings, semiconductor giant and Dow component Intel (Nasdaq: INTC) today reported record second-quarter earnings of 51 cents per shares, or $2.89 billion, compared to a loss of 7 cents per share, or $398 million, in the same quarter a year ago. Record revenues of $10.77 billion increased 34% compared to sales of $8.02 billion in the same period last year.
    The results handily beat consensus estimates of 43 cents per share and $10.25 billion in revenues. Intel President and CEO Paul Otellini labeled the performance “the best quarter in the company’s 42-year history” as gross margins of 67% and operating income of $4 billion also set records. Otellini said PC and server demand is expected to increase.
    The company also guided third-quarter revenues higher, saying they expect a range of $11.2 billion to $12 billion. Intel also lifted estimates for gross margins for the third quarter and fiscal 2010.
    Shares of the company gained 2% Tuesday to $21.01 ahead of the report and jumped more than 7% in after-hours trading.
    It was the company’s third straight year-over-year quarterly revenue gain as it continues to dig out of the recession bottom of $7.15 billion in revenues reported in the first quarter of 2009. It was the company’s fourth straight profitable quarter, a period that also seen earnings rise each quarter. The company’s trailing 12-month earnings rose to $1.67 per share, giving the stock a price-to-earnings ratio of about 12.6 based on Tuesday’s close. Its annual dividend of 63 cents offers a yield of 3.1%.
    Intel stock has been a laggard. It remains well below its all-time high of $147.50 set in July 2002 and hasn’t traded north of $30 since early 2004. It closed Tuesday 13% below its 52-week high of 24.20.
    Intel is the world’s largest provider of semiconductor chips and platforms for computing and communications systems and devices. Its primary component-level products include microprocessors, chipsets, and flash memory used in personal computers, servers and other products.

    Disclosure: No positions.
    Stocks: INTC
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