Intel's Q4 sales to be at the high end of forecast

In its mid-quarter forecast on Thursday of this week, the microprocessor giant is expected to announce that its sales will be at the high end--or even exceed--its previous forecast for the fourth quarter of 2002, according to a report issued today by SG Cowen Securities Corp.

"Given that PC component sales we're better than expected in October and early November, we expect Intel will either guide to the higher end of its +0-6% Q/Q revenue range or raise that range," according to a report from SG Cowen.

Back in October, Intel originally projected that its sales would hit $6.5-to-$6.9 billion in the fourth quarter of 2002--or flat-to-6% growth from $6.5 billion reported in the third quarter of this year.

Intel reported a net of $686 million, or $0.10 a share, in the third quarter of 2002. In fourth quarter of 2001, Intel reported a net of $504 million, or $0.07 a share, on sales of $7 billion.

In reality, however, the Q4 projections for Intel are all over the map. According to SG Cowen, Intel is expected to report 5% revenue growth quarter-over-quarter in Q4. Earnings are projected to hit $0.15 in Q4.

There is a consensus on Wall Street that Intel will report earnings of $0.12 on revenue growth of 3% quarter-over-quarter in Q4.