Intel to report amidst warnings of Chip sector

by Darcie | Saturday, Jul 14, 2012 | 493 views

Intel Corp will be posting its earnings next week as Wall Street braces for more bad news in the wake of recent series of grim reports concerning the chip industry.

Intel, which is the largest semi-conductor company in the world, is expected to post flat earnings with a very modest gain in the sales. The company is scheduled to report the earnings after the markets close on Tuesday.

However, a lot of investors are even gearing up for an even less upbeat outlook and report following the cutting down of the outlook forecast , in wake of weak demand, by Advanced Micro Devices and Applied Materials, the chip-equipment maker.

The revision of outlook from AMD, which competes with Intel in the PC and server chips market, was reportedly very sharp. The projection swung from an initial modest sequential gain to a decline of 11 per cent.

Analysts are expecting Intel to report a profit of 52 cents a share , on a revenue of $13.55 billion. As compared to this, a year ago Intel had reported a profit of 52 cents a share, on a sales of $13.03 billion.

Intel is also likely to trim its outlook for 2012 and the negative data from PC food chain continues to build and any material growth in this year is extremely unlikely , with a braid consensus on extreme caution.

The lingering uncertainty in Europe and the slowing down of the PC market, have been pointed as the main reasons behind this decline. Also, a weakening market in China could bring further troubles for the firms in the chip markets. The PC sales in Asian markets have been almost flat, being the worst in years and the impact of China can not be underscored at all.

 

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