NEW YORK (AP) — Hampered by the still slumping global personal computer industry, Intel plans to release its fourth-quarter results after the market closes Thursday.
WHAT TO WATCH FOR: Intel supplies chips for about four out of every five PC processors, so the consumer shift toward tablets and smartphones continues to hurt its sales. The company has tried to offset that decline with higher sales of chips for severs, phones and tablets.
Last week, a pair of research firms said PC sales continued to sink during the holiday shopping season, capping the steepest annual decline in PC shipments in decades.
According to Gartner Inc., worldwide PC sales fell 7 percent during the fourth quarter, marking the seventh-straight quarter of declines, while International Data Corp. said global PC shipments fell 6 percent.
Citi analyst Glen Yeung, who backed his "Buy" rating for Intel stock in a Sunday note to investors, said the drops were smaller than expected, noting that Citi expected a 10 percent drop. As a result, he said he remains optimistic about Intel's near-term earnings potential, adding that the release of the fourth-quarter results could send the shares up.