Intel Corporation (NASDAQ:INTC) upgraded its revenue guidance following the stronger than expected sales of business computers. The company has set the new guidance where revenue is expected in the range of $13.4 billion to $14 billion in the second quarter. Additionally, the profit margin is also anticipated to come in higher than expected for the chip-maker.
Intel raises guidance
For the full fiscal year, the company is expecting revenue to be higher, whereas, in January, the company said that sales would be in line with the last year’s number of $52.71 billion. Analysts expect revenue to come in at $13.02 billion for Intel Corporation (NASDAQ:INTC) in the second quarter, and that annual revenue will total to $53.07 billion.
Intel Corporation (NASDAQ:INTC) guided its second quarter revenue to come in at $13.7 billion plus or minus $300 million, which is an upgrade from its original guidance of $13 billion plus or minus $500 million. Driven by higher PC volume, the company expects gross margins to rise. Full year gross margin is expected to come somewhere in the upper half of the previous range of 61%, plus or minus a few percentage points, which according to Intel is supported by expected improvements in unit cost and volume.
Intel Corporation (NASDAQ:INTC) has also burnished its full-year forecast, guiding towards higher business PC unit volume that has already added to the revenue growth for the year compared to the previously flat outlook.
The chip maker will report its second quarter results on July 15, and analysts are expecting a profit of 46 cents per share.
Intel Corporation (NASDAQ:INTC)’s processors take 80% of the market share in the PC segment and are often the first mover among the chip companies. However, the chip selling business of the company is currently declining as users are shifting from personal computer to smartphones and tablets. Revenue from the PC business declined for Intel in the first quarter, but recently it showed some sign of improvements. Microsoft pulled down Windows XP, which encouraged upgrading to new PCs and driving Intel revenue in the process.
Intel Corporation (NASDAQ:INTC) shares surged 5.2% to $29.42 in after-hours trading, and positive momentum could take the stock to a two year high on Friday. Year to date the stock is up 8.3%