Intel delivered some unexpected good news after the close on Thursday.
During its mid-quarter update, the chip giant raised revenue estimates above expectations and also said it is making progress on its year-long inventory problem.
Intel said it now expects fourth-quarter revenue between $9.3 billion and $9.5 billion, above the company’s previous guidance range of $8.6 billion to $9.2 billion, “driven by strong worldwide demand for the company’s Intel Architecture products.” Analysts were looking for revenues of $8.97 billion.
Intel also said it “continues to make progress on inventory reduction and expects a net inventory decrease of several hundred million dollars by the end of the quarter.” Intel’s gross margin guidance of 55-57% was in line with the company’s previous guidance.
The unexpectedly strong guidance sent shares of Intel 7% higher after hours and boosted other tech names.
Stocks were mixed during the day ahead of Intel’s update and Friday’s November jobs report.
The Nasdaq rose 5 to 2143, the S&P 500 slipped 1 to 1190, and the Dow lost 5 to 10,585. Volume declined to 1.77 billion shares on the NYSE, but rose to 2.4 billion on the Nasdaq. Decliners led 20-12 on the NYSE, while advancers led 16-14 on the Nasdaq. Upside volume was 42% on the NYSE, and 60% on the Nasdaq. New highs-new lows were 524-14 on the NYSE, and 339-24 on the Nasdaq.
Corning fell 8% after two of its customers cut LCD orders.
Apple lost 4% after Salomon Smith Barney lowered its rating on the stock despite raising estimates.
Credence surged 8% on its results, while Synopsis
, Ulticom
and Comverse
fell on their results.
eBookers edged higher on news that it will be acquired by Cendant
.
