Categories Earnings, Technology

Intel Q3 earnings drop 6% but top estimates

Intel Corporation (NASDAQ: INTC) reported a 6% drop in earnings for the third quarter of 2019 due to higher costs and expenses. However, the results exceeded analysts’ expectations. Further, the chipmaker guided fourth-quarter revenue and earnings above the consensus estimates.

Net income dropped by 6% to $6 billion or $1.35 per share. Adjusted earnings rose by 1% to $1.42 per share. Revenue remained flat at $19.2 billion.

Intel (INTC) Q3 2019 Earnings Review

Intel has been facing misfortune due to the ongoing chip shortage as it is struggling to meet demand. However, the top line set an all-time quarterly record backed by data-centric revenue, up 6% year-over-year. PC-centric revenue was in-line with expectations, down 5% compared to last year.

Looking ahead into the fourth quarter, the company expects revenue to be about $19.2 billion and earnings of $1.28 per share. Adjusted earnings are anticipated to be $1.24 per share.

For fiscal 2019, the company lifted its revenue outlook to $71 billion from the previous forecast of $69.5 billion. The earnings guidance is lifted to $4.42 from previous estimate of $4.10, and the adjusted earnings outlook is raised to $4.60 from the prior expectation of $4.14.

For the third quarter, PC-centric business experienced lower year-on-year platform volume despite strong mix of Intel’s higher performance products as the commercial segment of the PC market remained strong.

Read: Cypress Semiconductor Q3 earnings snapshot

The data-centric businesses were benefited by strong mix of high-performance Intel’s Xeon processors and growth in every segment of the business. The communications service provider segment grew 11% while the cloud segment returned to growth, up 3%, and enterprise and government revenue rose 1%.

The Internet of Things Group achieved a 9% growth in revenue on strength in retail and transportation. Mobileye revenue grew by 20% on increasing ADAS adoption. Intel’s memory business achieved a 19% jump in revenue. Revenue from the Programmable Solutions Group rose by 2% after the shipment of first 10-nanometer based Intel Agilex FPGAs in the third quarter.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

DG Earnings: All you need to know about Dollar General’s Q1 2023 earnings results

Dollar General Corporation (NYSE: DG) reported its first quarter 2023 earnings results today. Net sales increased 6.8% year-over-year to $9.3 billion, driven mainly by positive sales contributions from new stores and

HRL Earnings: Key highlights from Hormel Foods’ Q2 2023 financial results

Hormel Foods Corporation (NYSE: HRL) reported second quarter 2023 earnings results today. Net sales of $3 billion were down 3.8% year-over-year. Net earnings attributable to Hormel Foods Corporation were $217.2

Everything you need to know about Salesforce’s Q1 2024 financial results

Customer relationship management platform Salesforce, Inc. (NYSE: CRM) on Wednesday reported an increase in first-quarter adjusted earnings, aided by strong revenue growth. First-quarter profit, excluding non-recurring items, increased to $1.69

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top