Intel Reports Better Than Expected Results For Third Quarter
Intel Corp. (NASDAQ:INTC) beat analyst expectations for its third quarter earnings when it released results earlier this week. In its financial third quarter, Intel made $16.1 billion in revenue on earnings of 94 cents per share. The results were higher than Wall Street estimates of $15.73 billion in revenue on earnings of 80 cents per share. On an adjusted basis, the company earned $1.01 cents per share, beating analysts’ estimate of 80 cents per share.
The company reported that its memory business grew 37 percent year-over-year, recording $891 million in revenue in the latest quarter. The Internet of Things unit grew 23 percent with $849 million in revenue. Its programmable chips business grew 10 percent with $469 million in revenue. The data center business was up 7 percent with $4.9 billion in revenue.
Intel CEO Brian Krzanich said, “We executed well in the third quarter with strong results across the business, and we’re on track to a record year.” However, the PC market continues to challenge Intel. Its client computing business had nearly flat revenue in the quarter when compared with the same quarter a year ago.
Intel is venturing into areas such as artificial intelligence and driverless cars to reduce its reliance on the PC market. The chipmaker completed the acquisition of Israeli autonomous vehicle technology firm Mobileye in August. Krzanich said in a statement, “Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”
Earlier this month, Intel announced that it was working with Facebook on chip more optimized for deep learning computing. Krzanich said on the earnings call, “AI is the smallest workload in the data center, but the fastest growing. We see it becoming a bigger and bigger portion of the business.”
The results topped Wall Street’s forecasts for both its top and bottom lines. Intel also raised its full-year revenue and profit forecasts. The company raised its full-year outlook to $62 billion in revenue with earnings per share of $3.25, up from its previous guidance of $61.3 billion in revenue on earnings of $3 per share issued in July. In after-hours trading following the report, Intel shares were up more than 1 percent.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.