Intel Corp (INTC)

[COMMON SENSE]

Intel narrows sales forecast

No. 1 semiconductor company cuts the high end of its previous guidance. Stock down after hours.
March 6, 2003: 4:25 PM EST



NEW YORK (CNN/Money) – Intel, the world's largest maker of semiconductors, narrowed its first-quarter revenue guidance Thursday. But its most optimistic expectations are below what it predicted earlier this year.

In a statement, the company said it expects sales to come in between a range of $6.6 billion and $6.8 billion. In January, Intel told Wall Street that it was expecting revenues to come in between $6.5 billion and $7 billion. According to First Call, the consensus estimate of Wall Street analysts is $6.8 billion, unchanged from the same quarter a year ago.

The company did not give guidance on earnings. Analysts are expecting earnings per share of 12 cents, compared with 15 cents a share in the first quarter of 2002.

Hopes for a semiconductor recovery have been increasing as of late. Shares of Intel (INTC: Research, Estimates) have gained nearly 7.5 percent this year and are up more than 25 percent from their early October lows. Two prominent Wall Street analysts also recently upgraded their view on Intel and other chip companies.

But Intel's stock tumbled more than 3 percent in after-hours trading on Thursday. Shares fell 28 cents, or 1.6 percent, to $16.70 in regular trading.