Intel earnings soar 96 percent
Intel Corp.’s second-quarter earnings jumped 96 percent Tuesday as the world’s largest semiconductor company reported stronger-than-expected demand for the flash memory chips used in cellular phones.
For the three months ended June 26, Intel earned $1.8 billion, or 27 cents per share, compared with $896 million, or 14 cents per share, in the same period last year. Sales increased 18 percent to $8.05 billion.
Analysts were on average expecting Intel to earn 27 cents per share on sales of $8.1 billion, according to a survey by Thomson First Call. In early June, the company said revenues would be between $8 billion and $8.2 billion.
“Intel continued to post strong year-over-year results in the second quarter as our microprocessor business followed seasonal trends and our communications business grew nicely, led by flash memory,” said Intel CEO Craig R. Barrett.
In recent weeks, several Wall Street analysts downgraded Intel and other semiconductor stocks, saying the industry’s upswing that started last year may be near or at its peak. The Philadelphia Semiconductor Index has fallen 11 percent this year.
Intel’s second-quarter results were announced after the end of regular trading. Earlier, shares of Intel closed at $26.14, down 10 cents, on the Nasdaq Stock Market. In the extended session, they fell 80 cents, or 3 percent.
“ Healthcare giant Johnson & Johnson more than doubled second-quarter profits from its year-ago results, when a large acquisitions charge depressed earnings.
The New Brunswick-based maker of contact lenses, surgical products, contraceptives and baby and skin care products posted double-digit sales growth in its pharmaceutical, consumer and medical device divisions.
The company on Tuesday reported net income of $2.46 billion, or 82 cents per share, for the April-June quarter. That beat, by 3 cents per share, the consensus forecast of analysts surveyed by Thomson First Call.
“ Philips Electronics NV posted a sharp rise in second-quarter profit on strong results from its semiconductor and consumer electronics units even as sales slipped at its key medical systems unit.
The Amsterdam-based group recorded net profit of 616 million euros ($674 million) for the April-June period compared with 42 million euros in the same period last year.
Group sales rose 11 percent to 7.28 billion euros ($9.03 billion) from 6.53 billion euros in the same period last year.
“ Slumping jeans maker Levi Strauss & Co. capitalized on the weak dollar and the success of its new discount brand to eke out its first quarterly profit since last summer.
The San Francisco-based company said Tuesday that it earned $5.6 million during the three months ended May 30, reversing a $41.8 million loss at the same time last year. It was Levi’s first profit since the quarter ending in August 2003.
Second-quarter sales totaled $959 million, a 3 percent increase from $932 million last year. If not for favorable currency fluctuations, the company said its sales would have dipped by 1 percent.
Levi’s is privately owned, but discloses its quarterly results because some of its debt is publicly held.
“ Merrill Lynch & Co. reported a 10.3 percent surge in second-quarter profits Tuesday as strong performances from its private client and investment management divisions partially offset lower earnings in its overseas and investment banking business. The results were below Wall Street expectations, though, and the company’s stock fell 3 percent on the news.
The New York-based brokerage earned $1.08 billion, or $1.06 per share, in the three months ending June 25, up from $977 million, or $1 per share, in the same period one year ago. Analysts polled by Thomson First Call had expecting earnings of $1.09 per share.
Merrill shares closed down $1.67 at $49.80 on the New York Stock Exchange.