Intel’s Q3 Profit Soars 59%, but Forecast Somewhat Muted (INTC)

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Computer processor maker Intel Corporation( INTC ) late Tuesday said its third quarter profit surged 59% from last year on higher revenue, but the company's forecast was a bit underwhelming.

The Santa Clara-based company reported third quarter net income of $2.96 billion, or 52 cents per share, compared $1.86 billion, or 33 cents per share, in the year-ago period.

Revenue jumped 18% from last year, to $11.1 billion.

On average, Wall Street analysts expected a smaller profit of 50 cents per share, on slightly lower revenue of $11 billion.

Looking ahead, the company forecast fourth quarter revenue to range from $11.0 billion to $11.8 billion, which could fall short or exceed analyst expectations for $11.32 billion.

Intel shares rose 27 cents, or +1.4%, in premarket trading Wednesday.

The Bottom Line
We had removed shares of INTC from our recommended list back on June 8, 2010, when the stock was trading at $20.31. The company has a 3.19% dividend yield, based on last night's closing stock price of $19.77. The stock has technical support in the $17 price area. If the shares can firm up, we see overhead resistance around the $21-$22 price levels. We would remain on the sidelines for now.

Intel Corporation( INTC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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