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. Last Updated: 07/27/2016

Yahoo and Intel Profits Rise Past Expectations

SAN FRANCISCO -- Internet media company Yahoo said on Tuesday its quarterly profit doubled on higher revenue from web advertising, beating Wall Street's consensus estimates, and its shares rose nearly 5 percent.

Yahoo posted net income of $205 million, or 14 cents per share, in the first quarter, up from $101 million, or 7 cents per share, a year earlier.

Revenue excluding fees Yahoo pays its advertising partners grew to $821 million, up 49 percent from $550 million. Total revenue rose 55 percent to $1.2 billion.

Analysts on average had expected the company to post a net profit of 11 cents a share on net revenue of $798 million, according to Reuters Estimates.

Shares of Yahoo rose 4.8 percent to $34.80 on the Inet electronic brokerage from a close of $33.22 on Nasdaq, while shares of rival Google rose 3.7 percent to $198.50.

Profit was also up at Intel, the world's biggest computer-chip maker. Intel said first-quarter profit rose 25 percent after demand for its new laptop chips surged and the company boosted production.

Net income rose to $2.15 billion, or 34 cents a share, from $1.73 billion, or 26 cents, a year earlier, the Santa Clara, California-based company said today in a statement distributed by Business Wire. Sales rose 17 percent to $9.43 billion, a record for the period. Profit beat the 31-cent average estimate of 36 analysts surveyed by Thomson Financial.

Chief executive Craig Barrett sped up output at the company's 13 plants to take advantage of demand for products such as the new version of its Centrino laptop computer package.

Intel slowed its plants in the second half last year to reduce a record stockpile of unsold chips. Gross margin, or the percentage of sales left after deducting costs, was 59.3 percent.

"The real thing driving growth this quarter was the strength of the laptop market," said Daniel Morgan, who helps manage $6.5 billion, including Intel shares, at St. Petersburg, Florida-based Synovus Investment Advisors.

"Intel is so far ahead of the competition in terms of all the money they spend. That has helped them in terms of maintaining full capacity and always having the best chips."

Revenue this quarter will be $8.6 billion to $9.2 billion, Intel said. That compares with an expected $8.9 billion, according to the average of 31 analysts in a survey by Thomson Financial.

Analysts, who have predicted Intel's results within 2 cents per share the past four quarters, expected first-quarter sales of $9.3 billion, the average of 33 estimates in a Thomson Financial survey.

(Bloomberg, Reuters)