Wednesday, April 20, 2011

Intel (INTC) Soars as Earnings Exceed Expectations

Intel's (NASDAQ:INTC) earnings beat expectations in the first quarter, driven by increase business demand for business computers, which also generated higher profits.

That was important because of some of Intel's competitors weren't able to make up soft PC sales with stronger business revenue.

Guidance from Intel was also impressive, as shares of the company shot up in after hours trading.

Intel's net income was $3.16 billion, or 56 cents a share, beating the 46 cents a share analysts polled by FactSet were looking for. Last year in the same quarter Intel earned $2.44 billion, or 43 cents a share.

Revenue was $12.8 billion, a 25 percent increase from $10.3 billion a year ago and above the $11.6 billion analysts estimated.

The revenue projection was higher than expected. Intel predicted second quarter revenue of $12.3 billion to $13.3 billion. Analysts expected nearly $11.9 billion, according to FactSet.

Intel closed Tuesday at $19.86, gaining $0.24. or 1.22 percent. After hours it was trading at $20.77, up $0.91, or 4.58 percent.

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