With the third quarter almost over, Intel is sending out an upbeat note to investors that its third quarter revenue will come in higher than anticipated. Intel's previous forecast called for third quarter sales of $14.9 billion, plus or minus $500 million, while the new forecast promises $15.6 billion, plus or minus $300 million.
The chip giant attributes this to replenishment of the PC supply chain inventory as well as some improvement in PC demand.
Intel's shares are up 2.28 percent on the news and are currently trading for $37.40 a share.
Intel Corporation (INTC) today announced that third-quarter revenue is expected to be above the company's previous outlook. The company now expects third-quarter revenue to be $15.6 billion, plus or minus $300 million, as compared to the previous range of $14.9 billion, plus or minus $500 million. The increase in revenue is primarily driven by replenishment of PC supply chain inventory. The company is also seeing some signs of improving PC demand.
The company is forecasting the mid-point of the third-quarter GAAP gross margin range at 62 percent, plus or minus a couple of points, up 2 points versus the prior third-quarter GAAP outlook gross margin midpoint of 60 percent, driven mostly by higher PC unit volume. The midpoint of the third-quarter non-GAAP gross margin range is now forecasted at 63 percent, plus or minus a couple of points, up 1 point versus the prior third-quarter non-GAAP outlook gross margin midpoint of 62 percent.
Third-quarter R&D plus MG&A spending is expected to be approximately $5.2 billion, $100 million higher than the prior expectation of approximately $5.1 billion. Third-quarter gains and losses from equity investments and interest and other income are expected to be a net loss of approximately $125 million, as compared to the prior expectation of a net loss of approximately $75 million. The tax rate for the third quarter is expected to be 22 percent, as compared to the prior expectation of 21 percent.
All other expectations have been withdrawn and guidance will be updated with the company's third-quarter earnings report on Oct. 18.