Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 15, 2010

Article Excerpt

INTEL CORP., $19.32, Nasdaq symbol INTC, reported better-than-expected earnings and record revenue this week. Even so, the stock fell 2%. That’s because investors fear that weak consumer confidence will hurt computer sales during the important Christmas shopping season. In the three months ended September 25, 2010, the chipmaker’s earnings jumped 59.2%, to $3.0 billion from $1.9 billion a year earlier. Earnings per share rose 57.6%, to $0.52 from $0.33, on more shares outstanding. That beat the consensus earnings estimate of $0.50 a share. Revenue rose 18.2%, to $11.1 billion from $9.4 billion. The gains were mainly due to strong computer demand from businesses. That offset weaker demand from consumers. Intel spent $1.7 billion (or 15.1% of its revenue) on research in the latest quarter. That’s up 17.1% from $1.4 billion (or 15.2% of revenue) a year earlier. The company’s high research spending weighs on its earnings, because it must immediately write off these costs. However, this spending is giving Intel…