Intel, the world's largest chip maker, last night reported a 15 per cent rise in quarterly profit in its personal computer business and gave an outlook that helped reassure jittery investors that it could grow despite tough market conditions.
Shares of Intel, which had fallen in recent days on fears that the company would report disappointing results after cutting its revenue forecast last month, rose more than 3 per cent in after-hours trade.
Intel employs 3,150 in the Republic of Ireland.
Earnings in the third quarter ended September 25th were $1.91 billion (€1.54 billion), or 30 cents a share, compared with a year-earlier profit of $1.66 billion, or 25 cents a share.
Revenue rose to $8.47 billion from $7.83 billion last year.
"Because they've guided analysts carefully, it does get the third-quarter earnings season off on a good note but not a great one," said Mr Hugh Johnson, chief investment officer at First Albany .
The profit included a tax benefit of 3.6 cents a share, including a six-tenths of a cent gain that the company had previously discussed.
Analysts on average had been targeting a third-quarter profit of 27 cents a share on revenue of $8.45 billion, according to Reuters Estimates.
Intel forecast fourth-quarter revenue of $8.6 billion to $9.2 billion, compared with the average analyst estimate of $9.1 billion, according to Reuters Estimates.
The company also targeted a fourth-quarter gross margin of around 56 percent, slightly below analysts estimates.
Shares of the Santa Clara, California-based company rose 70 cents to $20.98 in after-hours trading on INET after declining 33 cents, or nearly 2 per cent, in regular trading on Nasdaq.
The stock, which is off more than 35 percent for the year, rose in part because many investors were expecting a weaker outlook for the fourth quarter, said RBC Capital Markets analyst Mr Apjit Walia.
Intel's chief financial officer said the company was starting to see progress in its plans to cut back on inventories of unsold and unfinished chips, although fourth-quarter demand was seen below seasonal expectations.
"We're starting to see progress in cleaning up the inventory," said Mr Andy Bryant.
"As we look into the fourth quarter we still think there's a little extra inventory in the system. We feel demand's a little softer than you'd seasonally expect."
