Intel Raises Quarterly Guidance
September 16 2016 - 10:20AM
Dow Jones News
Intel Corp. on Friday raised its revenue forecast for the third
quarter amid signs of improving demand in the personal-computer
market.
The chip maker said it now expects third-quarter revenue of
$15.6 billion, plus or minus $300 million, up from a previous range
of $14.9 billion, plus or minus $500 million.
Intel said the guidance increase comes as inventory in the PC
supply chain needed to be replenished, and that the company had
seen "some signs of improving PC demand."
Intel shares, up 6% this year, added another 3.8% premarket to
$37.96.
When reporting its second-quarter's results in July, the Santa
Clara, Calif., company gave indications that fallout from the
declining PC industry is moderating even as more lucrative
server-chip sales grew less than expected.
Intel's chief executive, Brian Krzanich, has tried to position
the company for a new era in which PCs aren't an overriding focus.
At present, however, Intel still gets the largest share of its
revenue from PC chips. Last quarter, its revenue from the "client"
device business that includes PCs declined 3% from the year-earlier
period.
Meanwhile, Intel has slashed head count to adjust to weaker
sales growth and free up cash to invest in newer businesses.
Intel is set to report earnings for the September quarter on
Oct. 18.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 16, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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