Intel easily beats expectations, raises guidance

CNBC ^ | 10/14/2003 | NA

[Daus]

Intel easily beats expectations, raises guidance The chip giant sees its gross margin expanding in the 4th quarter to more than 60%. Before the close, stocks moved higher in an afternoon rally. Merrill Lynch, Johnson & Johnson impress.

Chip giant Intel (INTC, news, msgs) earned 25 cents a share in the third quarter, up from 10 cents a year ago and beating analyst expectations by 2 cents. And the semiconductor said it sees a big profit in the fourth quarter.

Intel said it earned $1.7 billion in the quarter on $7.8 billion in revenue up from $686 million and $6.5 billion in revenue in the 2002 third quarter. In the fourth quarter, the company expects its gross profit margin to be higher than 60%, up from 58.2% in the third quarter.

Intel shares, up 80% already this year, jumped 64 cents to $31.44 in after-hours trading.

The report came after investors spent most of today looking for an excuse today to move the stock market higher. But those who were just trying to lock in profits or believe market valuations are just too darn high were keeping them at bay.

[Daus]

And the semiconductor said it sees a big profit in the fourth quarter.

Cue the weeping Democrats.... :)

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[Always Right]

I see stocks enjoyed another day without any bubble bursting:

Dow.....9,812.98...+48.60....(+0.50%)
Nasdaq....1,943.19...+9.66...(+0.50%)
S&P 500...1,049.48...+4.13...(+0.40%)

Can't wait for the daily Market Wrapup to tell us why we should all be scared.

[Daus]

Can't wait for the daily Market Wrapup to tell us why we should all be scared.

:) We are in the land of 'Easy Earnings Expectations' this quarter (and Q4), though I'm not sure about Q104.

[Coop]

I read today where the analysts are expecting the airlines to post an operating profit this quarter. Delta (first to announce, with another loss - though cut in half) was supposedly the exception due to labor cost restructuring. That would certainly help improve consumer confidence.

[Always Right]

I read today where the analysts are expecting the airlines to post an operating profit this quarter. Delta (first to announce, with another loss - though cut in half) was supposedly the exception due to labor cost restructuring. That would certainly help improve consumer confidence.

But if you read Market Wrapup, you will discover that these profits are just accounting tricks, part of a plot by the big money people to suck you into the market so they can steal all your wealth and get us into another great depression.....or something to that effect. Of course I am not even sure what wealth I have since it is only in those worthless Federal Reserve Notes and not in gold.

[LS]

Glad I have Intel. I have to say, my accounts have just soared in the last two months, and are rapidly closing in on pre-2000 levels.

[zencat]

"Can't wait for the daily Market Wrapup to tell us why we should all be scared."

Amen to that. Can't a first-grader see that a trendline is a only a trendline until it is broken.

[LS]

Glad someone else is hip to "market wrap up." I got tired of blasting those guys' numbers out of the water. They always have an excuse. It reminds me of the Y2K people, who, right up until midnight of Y2K, were still on the "sky-is-falling" routine.

[Daus]

I read today where the analysts are expecting the airlines to post an operating profit this quarter.

It's a shame the terrorist overhang will probably never let the industry be valued correctly. With some of these re-done labor deals, there might actually be a decent purchase in there somewhere.

[CROSSHIGHWAYMAN]

Cue the weeping Democrats.... :)

Every day that the Dow gains 100pts or more, I call Dick Gephardt's Washington office and remind his staff of his braggadocio from the summer of 2002.

He said last year that for every 100 points that the Dow fell, the Democrats would gain 1 seat in the House.

Even when the Dow hit the bottom just before the midterm election last fall, they could not gain a thing!

My statements all sound like this......

"Although I don't live in Representative Gephardt's district, I'd just like to tell him that the Dow gained another 100 points today........and ask him

how does he like them apples.......HUH???"

[Tauzero]

"Glad I have Intel. I have to say, my accounts have just soared in the last two months, and are rapidly closing in on pre-2000 levels."

With a P/E nearing 60, I'm very glad I don't have intel.

I have to say, my accounts have soared the last few months, and surpassed pre-2000 levels in, well, 2000 actually, and haven't looked back.

[Tauzero]

"With some of these re-done labor deals, there might actually be a decent purchase in there somewhere."

Nobody makes money on airline stocks. Worthless stocks for buying and holding. Actively trading them is another matter.

[sergeantdave]

Intel? Isn't that a cooking company?

[Tauzero]

"I see stocks enjoyed another day without any bubble bursting"

Like someone else said earlier, a trendline is only a trendline until it is broken. :-))

[palmer]

A trendline that breaks up can also break down. We are at my predicted high of 1050. Timing is impossible to predict, but from this chart http://finance.yahoo.com/q/bc?s=^SPX&t=my&l=off&z=m&q=l&c= you can see we are still well above the broad trendline and will inevitably correct below it with about a 30 or 40 percent drop. That's with or without the economy picking up. The original bubble had nothing to do with the real economy and this shadow bubble doesn't either.