Intel's cloudy fourth-quarter outlook
Posted
Oct 14 2008, 04:58 PM
by
Kim Peterson
Rating:
Intel isn't sure how the economic crisis will affect the company next quarter. That's why it gave a huge range for potential quarterly sales today. Revenue could be $10.1 billion or as high as $10.9 billion, the company said. Who knows?
"It is hard to know what impact the financial crisis will have on end customer demand," CEO Paul Otellini said in a statement. Analysts were expecting sales of about $10.8 billion, but I imagine those estimates will be scaled back now.
As earnings season hits, we might start seeing more of these hands-thrown-in-the-air statements. No one could have predicted the bizarre twists and turns the U.S. economy has taken over the past month. Executives are nervous about staking any kind of claim for the fourth quarter.
So if companies are loathe to give accurate forecasts, where does that leave analysts? Or investors?
Even with Intel's uncertainty, investors are pushing up the stock in after-hours trading. That's because the company had an otherwise solid quarter, with a 12% increase in profits.
