Intel Gets Earnings Beat But Lowers Guidance
SANTA CLARA, Calif. (TheStreet) -- Intel(INTC) comfortably beat Wall Street's earnings estimate with its second-quarter results Tuesday, but lowered its full-year guidance to reflect a challenging macroeconomic environment.
Excluding items, Intel earned 57 cents a share, the same as the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 52 cents a share.
The no.1 chip maker brought in revenue of $13.5 billion, up slightly from $13.03 billion in the prior year's quarter and just below Wall Street's forecast of $13.56 billion.
Intel shares rose 0.2% to $25.43 in extended trading.
"The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones," said Intel CEO Paul Otellini, in a statement released after market close.
The CEO, however, predicted slowing growth. "As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment," he explained. "With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond."
Intel lowered its guidance for fiscal 2012, predicting year-over-year revenue growth between 3% and 5%, down from the prior expectation of high single-digit growth.
For the third quarter, Intel forecast revenue of $14.3 billion, plus or minus $500 million. Analysts surveyed by Thomson Reuters are currently looking for sales of $14.6 billion.
--Written by James Rogers in New York.
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