Intel beats estimates, but current quarter not exciting investors

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Intel (INTC), the world's largest chipmaker, beat consensus analyst estimates for both profit and sales in the first quarter. The company said sales for the current quarter will match what analysts are expecting.

"The most important event for the stock market tomorrow is what Intel reports tonight," fund manager Jim Awad told Fox Business News earlier today, before the announcement.

Shares are trading lower in after-hours trading as investors may be disappointed they are not hearing more from Intel's management about sales during the current quarter.

Heading into the earnings results, Intel shares have rallied 9.2 percent this year as investors anticipated improving first quarter sales. Collins Stewart analyst Ashok Kumar, who has a buy on Intel shares, told CNBC Intel had a "pretty good move and we're likely to see a pull back until we get better visibility on what demand looks like beyond the summer."

Intel CEO Paul Otellini said in a company statement today that the company believes, "PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns."

Typically, second-quarter sales are lower compared to the first quarter and then pick up in the third quarter.

Anthony Massucci is a senior reporter at DailyFinance. He previously covered technology stocks at Bloomberg News.
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