Intel beat the street’s estimates:
(Dow Jones) Intel Corp.’s (INTC) third-quarter net income grew 12% on higher sales and margins as the technology bellwether’s results met Wall Street’s expectations and its revenue view for the fourth quarter – traditionally the busiest for electronics makers – brackets analysts’ estimate.
The company said, “Current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters and makes it more likely that Intel’s actual results could differ materially from expectations.”
Shares rose 5.4% to $16.78 in after-hours trading from the close of $15.93 Tuesday.
The world’s largest computer-chip maker reported net income of $2.01 billion, or 35 cents a share, up from $1.79 billion, or 30 cents a share, a year earlier.
Analysts’ estimates were for per-share earnings of 34 cents on revenue of $10.26 billion, according to a poll by Thomson Reuters.
I’m not usually much of a bull on tech, but like I said, tech may broadly beat the street’s expectations for the previous quarter.
Also worth reading: Why Intel’s earnings matter
Firsty! Think I’ll go get a Mountain Dew.
SPODE
Are you saying that day-traders should be bullish on tech? That is not interesting.
If we are going to place longer term bets on sectors, I’d rather wait until the new administration settles in. Planning should start Nov. 5. The stock market is now wandering around.
@2 agreed that waiting to Nov 5 is an interesting, and fundamentally sound idea.
Not one you’re likely to hear from many financial advisers, either.
McCain would guarantee all savings for 6 months
http://www.breitbart.com/article.php?id=D93QDHAG0&show_article=1
A gimmick play that could actually cause real damage. (although i like the tax cuts)
I can’t get a loan to buy a Dell.
Intel, can you give me a loan?
@diablo
I think he’s trying to show that tech will be pulling a long-up through the downside that’s ahead, as is evidenced (by him) by the movements in INTC and IBM.
I disagree, to some extent, and think that tech will largely show down, due to lack of continued venture funding on the micro-cap side, and retracting markets for consulting services.
Additionally, I hold that sales numbers of “popular technology goods” will be lower than they should be (possibly higher than expected by analysts though, as the analysts have gone bear) leading to weaker earnings through the holiday season.
The problem with looking at IBM and INTC is that they are fairly correlated:
http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1223582400000&chddm=870346&cmpto=NYSE:IBM&cmptzos=-18000&q=NASDAQ:INTC&ntsp=0
and that that correlation becomes more pronounced as t approaches zero:
http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1224022815703&chddm=332314&cmpto=NYSE:IBM&cmptzos=-18000&q=NASDAQ:INTC&ntsp=0
@ Dan/Diablo/Phobos
Lets also not forget that (especially for IBM/INTC and some other entrenched biggies) that their results will invariably lag other indicators in a recessionary environment for a variety of factors.
Also, reverse-bullwhip effect wouldn’t be a surprise (if it hasn’t already happened): pc and device manufacturers/assemblers already committed to purchasing INTC chips/IBM services (etc) while facing slowing demand/sales, not to mention margin pressure.
Just wait and see the insane deals that are to come this holiday season, every device manufacturer and retailer doing whatever they can since they mortgage their entire year on q4…
This equity market is sick. Hedge/stop loss or avoid. I pulled off a +25% trade today but it was more psychology than any fundamentals.