This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Intel Maintains the Middle

Updated from 4:46 p.m. EDT

Intel (INTC) tightened its third-quarter sales goal around the midpoint of its original target late Thursday as the company continues to address supply issues.

The company's action was expected by many, as Intel is still dealing with an inability to meet all demand for its desktop chipsets, a factor that held back results in the second quarter.

Intel acknowledged this ongoing condition but said the quarter is proceeding overall as expected, with continued healthy growth in the PC market, especially for notebooks. "There is no real surprise in the revenue line," said CFO Andy Bryant during a conference call.

However, investors showed they were expecting a marginally better report. Shares edged down 0.7% to $25.91 in late trading after the update.

Intel expects sales between $9.8 billion and $10 billion and gross margins that will likely be slightly above 60%.

At the quarter's start, Intel predicted sales between $9.6 billion and $10.2 billion and gross margins of 60%, plus or minus a couple of points.

Analysts were expecting sales of $9.92 billion and earnings of 36 cents a share, on average, according to Thomson First Call.

Intel said its tax rate will be higher than anticipated during the current quarter by an unspecified amount because of an additional $250 million in taxes paid on the repatriation of about $6.3 billion of foreign earnings.

Intel disclosed last month in an SEC filing that it might have to pay up to $350 million in taxes related to repatriated earnings. The company's targeted tax rate was 30.5%.

The midpoint of Intel's revenue target -- $9.9 billion -- represented a 15% increase from the same quarter last year and a 5.7% rise from the second quarter. Intel typically garners sequential growth in the third quarter closer to 7%.

Intel investors have bailed out of the stock since its second-quarter report in mid-July. Since then, shares dropped from a one-year high of almost $29 to a three-month low of $25.50.

Ahead of Thursday's announcement, Intel investors lifted the shares back above $26, but those gains faded in the wake of the Santa Clara, Calif.-based company's update.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs