Intel beats market estimates in the second quarter and publishes encouraging forecasts for the whole of 2014, showing the first signs of improvement in the PC market, which has been in crisis for some time due to falling sales.
Between April and June, the group achieved profits of 2,8 billion, against 2 billion in the same period last year. In terms of earnings per share, the figure jumped from 39 cents to 55 cents, beating the consensus set at 52. On the revenue front, Intel reached $13,83 billion, up 8% over the same period of 2013 and beating market estimates which expected $13,69 billion.
The microchip giant's accounts are consistent with what IDC and Gartner expected, which last week announced that computer sales improved in the second quarter of the year: IDC revised its estimates from -7,1% to - 1,7%, while Gartner said PC shipments climbed 0,1%.
Intel's gross margins came in at 64.5%, up from 59.6%% in the first three months of 2014 and better than the company's estimates of 64%. The group also announced plans to add $20 billion to its buyback plan with a $4 billion share buyback in the current quarter. The market value of the Californian company is estimated at around 158 billion dollars.
"Our second-quarter results highlight the strength of our strategy to extend Intel technology from the data center to the PC to the Internet of Things," said Chief Executive Officer Brian Krzanich.
In any case, many analysts are wondering how much the PC market will continue to grow in the coming months, noting how the increase in sales is linked to the business world and not to the purchase of computers by individuals both in the United States and in the Developing countries.
For Intel, however, positive results have also arrived on the outlook front: for the current quarter, the group expects revenues of 14,4 billion, against a consensus of 14,03 billion. While awaiting the results, once the markets were closed, the Intel stock had finished the session at $31,71 (+0,7%). In the after-hours the stock managed to gain more than 4%.
