Intel Reports Q3 Results (INTC)
Despite posting better than expected third quarter results, shares of Intel Corporation (NASDAQ: INTC) slumped 3.27% in aftermarket hours on Tuesday after the company provided a lackluster outlook for fiscal fourth quarter in the wake of flagging sales in the PC industry on account of global macroeconomic uncertainty even as more and more users are preferring tablets over PCs.
According to industry analysts, the PC industry is witnessing its worst phase since 2001. Slowing economic growth in China along with sagging European economy and uncertainty surrounding the U.S. economy due to possibility of spending cuts, will impact the PC shipments this year, said analysts.
Intel now expects fourth-quarter revenue to fall between $13.1 billion and $14.1 billion.
Analysts’ polled by Thomson Reuters were expecting revenue of $13.74 billion which is higher than the company’s midpoint range of revised revenue forecast.
For the third quarter, Intel reported earnings of 58 cents per share, down from 65 cents per share in the year quarter while revenue contracted 5 percent to $13.5 billion from $14.23 billion, in the corresponding period of last year.
Analysts polled by Thomson Reuters had most recently forecasted earnings of 49 cents a share on revenue of $13.23 billion.
Commenting over the results, Intel’s Chief Executive, Paul Otellini said in a statement, “Our third-quarter results reflected a continuing tough economic environment.”
Nevertheless, analysts such as Alex Gauna of JMP Securities were not convinced with results and company’s long term outlook, notwithstanding the current slowdown in the economy.
Speaking to CNBC, just after the release of quarterly results, Gauna said, “I don’t think the results answer any of the longer-term questions about the company … Intel still has a lot to prove in terms of how it can compete in this new era of mobility.”
anish <� ca0o���� the WSJ that request will not be made this week, the development brought cheers in the market. Uncertainty surrounding Spain’s stance on the bailout has kept investors on edge, resulting in sharp fluctuations in the foreign exchange market. The euro was also boosted by German Investor Sentiment Index which climbed higher than expected for October.
Commenting over the weaker dollar and its possible impact on gold’s prices, Jeffrey Wright, a managing director at Global Hunter Securities said to MarketWatch, “Overall sentiment for gold is [for] higher prices in coming weeks, with periods of short-term profit taking, the bias will continue to the upside due to QE3 [and] modest economic improvements in Europe, which both contribute to a weaker U.S. dollar,”
A weaker dollar, in general, tends to boost the demand for gold since dollar priced commodities become cheaper for those traders who deal in currencies other than the greenback.
Holdings in ETF Shrinks
A data provided by Reuters showed that holdings of gold in major gold-backed exchange traded funds, including world’s largest gold ETF, the SPDR Gold Trust (ETF) (NYSE: GLD), fell to 213,228 ounce as of October 15 while the largest silver ETF, the iShares Silver Trust (ETF) (NYSE: SLV) also recorded an outflow of 290,558 ounces on Monday.
In some other precious metal markets, silver futures for December delivery edged up 0.7%, to settle at $32.96 an ounce. Platinum futures for January contract climbed 0.8%, to close at $1,645.20 an ounce, and December palladium futures jumped 1%, to end the day at $638.95 an ounce.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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