Intel Raises Revenue Outlook, Cites Business PC Demand--Update

By Josh Beckerman 

Intel Corp. increased its revenue guidance for the year, citing stronger-than-expected demand for business PCs.

Intel shares rose more than 3% in after-hours trading.

For the second quarter, the company expects revenue of $13.7 billion, plus or minus $300 million, compared with previous guidance of $13 billion, plus or minus $500 million.

Intel now projects "some revenue growth" for the full year. The chip maker previously projected approximately flat revenue.

For the second quarter, Intel forecasts the midpoint of its gross margin range will rise by 1 point to 64%, while full-year gross margin is expected to be in the upper half of prior guidance of 61%, plus or minus a few percentage points, reflecting expected improvements in unit cost and volume.

Analysts polled by Thomson Reuters project second-quarter earnings of 47 cents a share on revenue of $13 billion for Intel. For the full year, analysts project earnings of $1.89 a share on sales of $53.06 billion. Last year, Intel earned $1.89 a share on sales of $52.71 billion.

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