(Reuters) – Intel Corp forecast current-quarter earnings and revenue top estimates and it raised its full-year sales forecast on Thursday, allaying concerns about a worldwide sales of semiconductor manufacturing slowdown and curbs on sales in the united states, to Huawei Technologies.
FILE PHOTO: a Computer chip manufacturer, Intel’s logo will be displayed on a gaming computer’s display on the opening day of E3, the annual video games expo, reveal of the latest gaming software and hardware in Los Angeles, California, USA, 11 June, 2019 at the latest. REUTERS/Mike Blake/File Photo
Separately, the company said it would sell the majority of its smartphone modem business, to Apple Inc. ‘ s the $1 billion mark.
Intel’s shares rose 6.5%, to $55.56 in the extended trade.
The chip industry is in for a slowdown, with the research firm Gartner is predicting worldwide semiconductor revenue fall by 9.6 per cent to $429 billion in 2019.
Chipmakers have been hit by one of the U.S.-china trade tensions, including tariffs on some products and restrictions on the sale to Ascend.
Intel has said it has reworked its supply chain to the limit, make the most of the rate effects, but does not specifically mention the impact of the Smartphone’s limits.
The Santa Clara, Calif. – based company has struggled with delays in the transition to the next generation of chip technology.
Intel forecast revenue and net profit of $18 billion to $ 1.24 per share, for the third quarter, above analysts ‘ estimate of $17.72 billion, and $1.16 per share.
The company said that it expects 2019 sales of $ 69.5 billion, compared with $69 billion and told investors to expect in April.
Sales in Intel’s client computing business, which will be suitable for PC manufacturers, and it is still the largest contributor to revenue, rose to $8.84 billion, beating FactSet estimates of $8.13 billion.
The revenue from the higher margin data center business grew to a total of $4.98 billion, above estimates of $4.89 billion, according to FactSet.
Intel, the world’s leading provider of processor chips for pcs, for decades, have come to count on the data-center chips, with most of the growth in sales.
The company said it expects a profit of $500 million, net of tax, from the sale of the modem business.
Net income fell to $4.2 billion, or 92 cents per diluted share, for the second quarter of $5 billion, or $1.05 per diluted share, a year earlier.
Net sales decreased by 3% to $16.5 billion.
With the exception of the items, the company earned $1.06 per share.
Analysts on average had expected adjusted earnings of 89 cents a share and revenue of $15.7 billion, according to IBES data, Refinitiv.
Reporting Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila