Tuesday, July 17, 2012

Intel 2Q earnings fall, sees economic headwinds

In this Thursday, July 12, 2012, photo, Intel Core i7 processors are stacked at a store in Cambridge, Mass. Intel, the world's largest chipmaker, said Tuesday, July 17, 2012, the weak global economy is slowing its growth as its earnings fell 4.3 per cent in the latest quarter as operating expenses rose faster than revenue. (AP Photo/Charles Krupa)

In this Thursday, July 12, 2012, photo, Intel Core i7 processors are stacked at a store in Cambridge, Mass. Intel, the world's largest chipmaker, said Tuesday, July 17, 2012, the weak global economy is slowing its growth as its earnings fell 4.3 per cent in the latest quarter as operating expenses rose faster than revenue. (AP Photo/Charles Krupa)

(AP) ? Intel Corp., the world's largest chipmaker, said Tuesday that the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below Wall Street forecasts.

Intel's second-quarter net income was $2.83 billion, or 54 cents per share. That was down 4.3 percent from $2.95 billion, or 54 cents per share, a year earlier, as operating expenses rose faster than revenue. Intel has been buying back shares, accounting for the flat earnings per share.

Analysts polled by FactSet were expecting earnings of 52 cents per share for the latest quarter.

Revenue rose 3.6 percent to $13.5 billion. Analysts were expecting $13.54 billion.

The Santa Clara, Calif., company says it expects $13.8 billion to $14.8 billion in third-quarter revenue, with a midpoint of $14.3 billion, below the analyst forecast of $14.6 billion.

"As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment," CEO Paul Otellini said in a statement.

After the release of results, Intel's stock fell 8 cents to $25.30 in extended trading. During the regular session, it gained 25 cents, or 1 percent, to close at $25.38.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/495d344a0d10421e9baa8ee77029cfbd/Article_2012-07-17-Earns-Intel/id-f87398e6ac544384b6cabd04078b85a5

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