SAN JOSE, Calif. — Intel Corp. said it is on track to meet third-quarter revenue forecasts after July and August were unexpectedly strong despite the sluggish economy.
Shares of Intel rose 64 cents, or 2.5 percent, to $26.74 in early trading Friday on the NASDAQ Stock Market.
The world's largest chipmaker said Thursday its revenue for the three months ending Sept. 29 will be slightly below the midpoint of the range provided in its second-quarter earnings report.
In the July 17 report, executives said the number is expected to be between $6.2 billion and $6.8 billion.
Analysts are expecting third-quarter revenue of $6.4 billion and earnings of 10 cents per share, according to a survey by Thomson Financial/First Call. Intel posted sales of $8.7 billion in the third quarter of last year.
"It's not like I had a blowout July and blowout August," said Andy Bryant, Intel's chief financial officer. "If I had, I'd be sitting here saying happy days are here again. What we're saying is that it's better than expected."
"The consensus view over the past couple days was that Intel was going to miss or say something terrible," said Hans Mosesmann, an analyst at Prudential Securities. "This is pretty good."
Intel said its core microprocessor business continues to follow seasonal growth patterns, while its flash and communications chip businesses remain flat and in line with expectations.
"It could have been a lot worse," said Dan Niles, a Lehman Bros. analyst.
Still, Niles added, the company did lower its revenue projection to below the midpoint of the range given in July despite the improvements in July and August.
"It must mean that the month of September is not as good as they thought," he said.