Intel Raises Outlook, Sending Shares Higher

By Sarah E. Needleman 

Intel Corp. posted a drop in third-quarter earnings, but for a second period in a row raised its full-year outlook helping ease investor concerns over chip supplies and softening demand.

Shares of the chip maker jumped more than 7% in after-market trading.

Intel on Thursday reported adjusted earnings of $1.35 a share, compared with $1.40 for the year-prior period. Analysts surveyed by FactSet were expecting earnings of $1.23 a share.

Third-quarter sales for the Santa Clara, Calif., company rose to $19.19 billion from $19.16 billion, also topping expectations.

Intel, the largest chip maker in the U.S. by revenue, said it expects $19.2 billion in sales in the current quarter. That outlook could help investors overcome broader concerns that technology spending by large businesses is slowing.

Texas Instruments Inc. this week gave muted guidance for the current quarter, saying customers were more cautious.

"We now expect to deliver a fourth record year in a row," Intel Chief Executive Bob Swan said in a statement.

The company said it raised its full-year revenue outlook by $1.5 billion to $71 billion. It also boosted its full-year earnings outlook to $4.60 a share from $4.40.

Write to Sarah E. Needleman at [e-mail]

(END) Dow Jones Newswires

October 24, 2019 16:46 ET (20:46 GMT)

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