Intel shares jump on strong Q1 earnings report

Chip maker trounces Street earnings, revenue estimates

Shares of Intel (NASDAQ: INTC) jumped nearly 7 percent in extended trading Tuesday after the chipmaker reported a 29 percent increase in first-quarter net income.

Intel stock climbed as high as 21.19 after hours, a gain of 6.7 percent over Tuesday's closing price of 19.86.

Net income for the first quarter was $3.3 billion, a gain of 34 percent over the year-ago quarter, while earnings per share were 56 cents, up 37 percent from the first quarter of 2010.

Revenue was $12.85 billion, a gain of 25 percent from a year ago.

Intel said the EPS and revenue figures were records for the chip maker.

Consensus forecasts called for Intel to report Q1 earnings of $11.87 billion, or 46 cents a share, on revenue of $11.6 billion.

In a statement accompanying the earnings release, chief executive Paul Otellini said, “The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies. These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 percent annual revenue growth.”

Intel said it expects second-quarter revenue of approximately $12.8 billion.

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