Street Expects 38 Percent 2Q Rise From Intel

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July 13, 1999 (3:28 AM EDT)

Street Expects 38 Percent 2Q Rise From Intel

Intel will be cranking out good newson Tuesday afternoon if analysts have it figured right.

The world's largest chip maker will announce second quarter earnings after the markets close, and analysts surveyed by First Call are expecting a 38 percent rise, to 53 cents a share. That compares with a net of 33 cents, or $1.17 billion, for the same quarter a year ago.

Sales are looking good too, and the Street expects an increase of about 18 percent, to $7 billion from $5.9 billion, from last year. Intel has regained some of the market share that it lost last year by cutting prices, analysts said.

Slow PC and chip demand have started to turn aroundand should continue to improve through the rest of the year, they added.

Intel will report good profits because its production costs are continuing to come down, analysts said. Some analysts voiced concern earlier over Intel's aggressive price cutting during the second quarter, but that does not appear to have adversely affected quarterly results.

Analysts predicted the company's gross margin for the quarter will be about 59 percent, unchanged from the first quarter.

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