A solid demand for desktops and servers helped Intel’s margins and earnings forecasts exceed the expectations of Wall Street, fears that spending on technology is brake goalpost.Intel set a positive tone for the season’s profits from the sector, which drove to titles such as Microsoft and Cisco. The action Standard & Poor s 500 index futures climbed suggesting a solid Wall Street opening for Wednesday July 14, 2010. The largest manufacturer of processors of the world expected gross margins record of 67 per cent for the third quarter, more or less a couple of percentage points. The company plans to additionally income between 11,200 million (about 8,900 million euros) and 12,000 million dollars, the goal of analysts of $ 10,900 million surpasses it. Demand was stronger than many people expected.
The market was worried that corporate spending was limited by what happened in Europe, and that was not the case, said John Massey, SunAmerica Asset Management Portfolio Manager. The financial Chair of Intel, Stacy Smith, insisted on expectations of sustained spending increases to upgrade and replace old equipment. CEO, Paul Otellini, said in a conference call with analysts that inventories remain lean. I would expect that the enterprise market remains strong in the third quarter, Smith told Reuters. Intel said that its sales in the three months that ended June 26 totaled 10,800 million dollars, which compares with 8,000 million dollars a year ago and 10,250 million dollars expected by analysts, according to Thomson Reuters analystreports. in a quarter in which people expected a relatively strong performancethey exceeded it widely and offered a number of good estimates. They seem to have been unaffected by the pessimism that is impacting actions, said Charter Equity Research, Edward Snyder analyst. Continue reading By Leonel Morales.