Intel forecast June-quarter revenue in line with expectations and trimmed its capital spending plans as the personal computer industry grapples with falling sales and a shift toward tablets and smartphones.
Intel Corp. (INTC) and personal computer makers are struggling to stop a decline in shipments as consumers hold off on buying new laptops in favor of more nimble mobile gadgets.
"These numbers are not very solid, but the second-quarter guidance is better than feared. Conditions are probably not as bad as industry reports have suggested recently," said Doug Freedman, an analyst at RBC Capital.
Under pressure, Intel also said in its quarterly news release on Tuesday that it was reducing 2013 capital spending from $13 billion to $12 billion, plus or minus $500 million.
Intel held firm on its previous forecast that revenue would grow by a low single-digit percentage this year, a target some analysts believe is becoming more difficult to hit.
"That scares the hell out of me. They are holding to the same ultra-bullish forecast they gave before," said Stacy Rasgon, an analyst at Bernstein Research. "They are presumably pretty bullish on the new products they are planning."
Intel said its first-quarter revenue was $12.58 billion, down from $12.91 billion in the year-ago quarter.
The world's largest chipmaker forecast June-quarter revenue of $12.9 billion, plus or minus $500 million.
Analysts had expected $12.588 billion in revenue for the first quarter and $12.854 billion for the June quarter, according to Thomson Reuters I/B/E/S.
Intel posted first-quarter net income of $2.04 billion, or 40 cents a share, down from $2.74 billion, or 55 cents a share, in the year-ago period. Analysts on average had expected 41 cents per share.
Shares of Intel rose 0.5 percent in extended trade after closing up 2.50 percent at $21.91 on Nasdaq.
(Updated at 4:50 p.m. EDT)
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Satellite radio has never been more popular. There are now 23.9 million subscribers after the parent company of Sirius and XM closed out 2012 with 2 million more accounts than it had when the year began.
However, Sirius XM lost its longstanding CEO late last year, and a media conglomerate has acquired a controlling stake in the satellite radio provider -- events that have triggered uncertainty.
Still, Sirius XM is a company that has been consistently profitable and generating growing amounts of revenue and free cash flow on its own. And, auto sales also remain strong: Those represent the largest source of new subscribers for Sirius XM, as most of its users tune in through car factory-installed receivers.
A few years ago, Nokia was the undisputed top dog in mobile phone handsets. The Finnish company was a global juggernaut at a time when consumers were swapping beepers -- remember those? -- for wireless phones.
But the market has evolved repeatedly since then. Cheaper feature phones have been replaced by smartphones that run apps and surf the Web, and Nokia has been slow to embrace the platforms that matter. Obviously it couldn't put out an iPhone, but it also wasn't able to match Samsung's early push into Android devices that are now globally popular.
Nokia is accepting billions to back Microsoft's fledgling Windows Phone mobile operating system, but the stock has been stuck in the single digits for more than two years.
It isn't easy being a regional telco, offering up landlines, Internet, and cable TV to rural markets.
A big draw for investors in Frontier Communications is its meaty dividend payout. Even after slashing its quarterly rate from $0.1875 a share to $0.10 a share last year, the stock's still yielding 10 percent. The large dividend is significant, since shorts actually have to cover that when it gets paid out.
Analysts see revenue and profitability continuing to decline here, and pessimists are holding out for more dividend cuts in the future.
The old "Intel inside" ads came out at a time when PC sales were booming. Manufacturers were hopping on Intel microprocessors to power desktops and laptops, only turning to smaller rival Advanced Micro Devices (AMD) when they wanted to show Intel that they weren't entirely dependent on the chip giant.
But the tech world have taken an "Intel outside" approach in recent years. PC shipments have fallen for two years, and Intel's efforts to get its chips into the smartphones and tablets that people are actually buying haven't been effective enough to offset its declines on the PC side.
The poster child for the "too big to fail" banking giants is starting to bounce back.
Bank of America stock hit a fresh 52-week high this month, and regulators finally eased up on the bank after it cleared its stress test. That freed Bank of America to return more of its money to shareholders beyond its token quarterly dividend of $0.01 a share, and the financial services giant's first move was to declare a huge share repurchase program.
As long as the housing market holds up and the general state of corporate America makes lending money to companies a smart bet, Bank of America will do just fine. Shorts, naturally, don't see it that way at all.