SAN JOSE, Calif. Don’t look for a stellar quarter from Intel Corp.
Intel, which is expected to report its first-quarter results on Wednesday (April 19), is seeing slower-than-expected growth in the PC sector.
“We expect Intel to report revenue of $8.95 billion (consensus at $8.94 billion), pro forma EPS of $0.26, and GAAP EPS of $0.21, which includes the expensing of options,” said Doug Freedman, an analyst with American Technology Research Inc., in a report.
“We think the quarter tracked well below management's expectations,” Freedman said. “We expect to hear that notebook and low-end desktop sectors were below expectations. We believe revenue guidance could be below both our and street estimates, driven by weaker notebook, emerging markets, and European sales.”
Last month, Intel said that first-quarter revenue will range between $8.7 billion and $9.1 billion, compared to the previous guidance of $9.1 billion to $9.7 billion. It cited weaker than expected demand and a slight loss of market share.
Intel (Santa Clara, Calif.) said it expected first-quarter gross margins to be adversely affected by the change in revenue. Expenses are expected to be lower than previously forecast due to lower revenue- and profit-related spending