Intel Q2 Profit Tops Estimates On Higher Revenue

July 15, 2008 6:55 p.m. EST

San Francisco, CA (AHN) - Shares of Intel Corp. are moving higher in after-hours trading Tuesday after the chipmaker posted a 25 percent increase in second quarter earnings.

The company reported second quarter net income of $1.6 billion or 28 cents a share, compared with $1.28 billion or 22 cents the same period a year ago. Earnings topped analyst estimates of 25 cents a share, according to Thomson Financial.

Second quarter revenue was up roughly 9 percent to $9.47 billion, topping analyst expectations of $9.32 billion.

"As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe," Chief Executive Paul Otellini said in a statement, according to Reuters.

Intel saw its gross margin rise to 55.4 percent, up from 53.8 percent in the same period a year earlier. The number was just below the midpoint of their forecasted range as demand for lower margin products was strong during the quarter.

The company said it expects revenue of $10 billion to $10.6 billion in the third quarter. The average analyst estimate is for $10 billion, according to Reuters.

Shares of Intel closed Tuesday up 25 cents or 1.2 percent to $20.71.