Intel Hoping For Boost From Windows 8
Intel (INTC) designs, manufacture, and markets semiconductors in the United States and throughout the world. Intel has its headquarters in Santa Clara, California. The company has a market cap of $107.5 billion, and its stock price is around $21.
On September 11th, Intel’s stock price hit a 52 week low of $21.52. Intel stock price has decreased primarily because of a downturn in the personal computer (PC) market. While Intel has tried to diversify into areas such as cloud computing and just recently the foundry business, its earnings are still largely dependent on PC sales. In its second quarter earnings call, the company reported that the PC consumer market had slowed in Western Europe and North America, and that it probably will not recover, in the second half of the year. The company went on to say that PC sales in emerging markets such as China and Brazil are growing, but that the growth rates had moderated. As a result of the slowdown in PC sales, “Intel lowered its full-year revenue growth to the 3% to 5% range, down from a previous forecast in the high single digits.” On September 7th, Intel announced that it expects its third quarter earnings to be $0.50 per share, the midpoint of analyst forecasts of $0.47 to $0.56. The company warned that third quarter revenues would be around $13.2 billion which was below its previous guidance of $13.8 billion to $14.8 billion.
Intel’s revenue warning was not surprising, because several other companies whose earnings are tied to the PC business have done the same thing. To continue reading, click here.