Intel optimistic about the recovery
The world's largest microchip maker said it feels strongly about its business outlook as technology and innovation will lead the economic recovery.
NEW YORK (CNNMoney.com) -- Microchip maker Intel reported quarterly sales, profit and an outlook that easily beat Wall Street's estimates Tuesday, and said it is optimistic that demand for chips will continue to rise as the economy recovers.
The Santa Clara, Calif.-based company's net income was $1.9 billion, or 33 cents per share, in the third quarter. That's 8.3% lower than the $2.3 billion the company recorded during the same period last year. Analysts polled by Thomson Reuters forecasted earnings of 28 cents per share.
The company said earnings fell from last year's levels due to lower chip prices.
Sales fell 8.8% to $9.4 billion, but topped analysts' forecasts of $9 billion.
The company attributed the better-than-expected sales to a recovery in PC sales, with the back-to-school cycle exceeding expectations.
For the current quarter, Intel said it expects revenue of between $9.7 billion and $10.5 billion. That trounced Wall Street's forecasts that ranged from $8.9 billion to $9.8 billion.
"Intel's strong third-quarter results underscore that computing is essential to people's lives, proving the importance of technology innovation in leading an economic recovery," said Paul Otellini, Intel's chief executive, in a statement. "This momentum in the current economic climate, plus our product leadership, gives us confidence about our business prospects going forward."