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28 May 2017 16:37 (South Africa)

Intel makes money, the rest should follow

For years, Intel was, and still is, a bellwether company: As the US economy goes down, demand for computers goes down and Intel loses money. And as the cycle comes back up, so does the demand for computers, which still mostly run on Intel chips. So, when Intel came up with its quarterly results on Tuesday, many were cheering. As the world’s largest maker of computer chips, Intel is considered an indicator for the wider industry. So the fact that the company’s latest revenue and profit numbers handily beat expectations is a very good sign indeed. Posting third-quarter results, Intel (INTC) said it earned 35 cents a share on revenue of $9.39 billion. That’s not quite what the company reported during the same period last year, when it saw earnings of 35 cents a share on revenue of $10.2 billion. Even better, the company bumped up its fourth-quarter guidance from sales of $9.7 billion to sales $10.6 billion, while consensus estimates have been calling for sales of $9.5 billion.Perhaps the turnaround CEO Paul Otellini has been trumpeting for the last half year is not as far off. Now we wait for the rest of economy.

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