Intel: lifts its revenue forecast, shares jump
(CercleFinance.com) - Intel raised its full-year revenue forecast late on Thursday, citing strong demand for its "data-centric" businesses, its data center solutions that target server, network, storage, and Internet of things (IoT) applications.
The company, the world's leader of computer processors, said it expects sales of 7.1 billion dollars this year, up 1.5 billion dollars from its July guidance.
Intel also said it now expects full-year GAAP EPS of 4.42 dollars for 2019, and has raised its full-year non-GAAP EPS outlook to 4.60 dollars.
Intel's third-quarter revenue of 19.2 billion dollars set a new record, exceeding its July guidance, driven by record data-centric revenue, which grew 6% year-on-year.
On the other hand, PC-centric revenue declined 5% year-on-year, consistent with guidance.
Although many analysts welcomed Intel's strategic transformation to a data-centric company, they also remained cautious on increasing competitive dynamics in its landscape.
"We are concerned around Intel's ability to continue to raise pricing in light of more substantial competition from AMD," said Wedbush Securities.
"While Intel is now benefiting from a cyclical uptick in hyperscale spending, our concerns around the impact of competition in 2020 and beyond cause us to remain negative on the group's prospects," the broker added.
The stock of Intel, which is based in Santa Clara, California, is currently up 7.1% at 56 dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The company, the world's leader of computer processors, said it expects sales of 7.1 billion dollars this year, up 1.5 billion dollars from its July guidance.
Intel also said it now expects full-year GAAP EPS of 4.42 dollars for 2019, and has raised its full-year non-GAAP EPS outlook to 4.60 dollars.
Intel's third-quarter revenue of 19.2 billion dollars set a new record, exceeding its July guidance, driven by record data-centric revenue, which grew 6% year-on-year.
On the other hand, PC-centric revenue declined 5% year-on-year, consistent with guidance.
Although many analysts welcomed Intel's strategic transformation to a data-centric company, they also remained cautious on increasing competitive dynamics in its landscape.
"We are concerned around Intel's ability to continue to raise pricing in light of more substantial competition from AMD," said Wedbush Securities.
"While Intel is now benefiting from a cyclical uptick in hyperscale spending, our concerns around the impact of competition in 2020 and beyond cause us to remain negative on the group's prospects," the broker added.
The stock of Intel, which is based in Santa Clara, California, is currently up 7.1% at 56 dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.