Intel’s Profit Slides as PC Market Shrinks
First-quarter net profit fell at Intel Corp. (NASDAQ: INTC – $26.77), but beat Wall Street’s estimates as the chipmaker wrestles with shrinking demand for personal computers. The semiconductor maker reported first-quarter net earnings of $1.947 billion, or $0.38 a share, compared with $2.045 billion, or $0.40 a share, in the year-ago quarter. First-quarter revenue was $12.76 billion, compared with $12.58 billion in the year-ago quarter. Analysts on average expected $0.37 a share on revenue of $12.814 billion. Intel forecast revenue of $13 billion, plus or minus $500 million, for the second quarter, which ends in June. The company also expects a full-year gross margin of 61 percent, plus or minus a few percentage points, 1 percentage point higher than Intel’s previous forecast. The shares, yielding 3.4%, are still worthy of consideration in an income portfolio for its long-term total return potential.