Intel tops 3Q forecast but shares fall on sales outlook
SANTA CLARA, Calif. (AP) — Intel Corp. on Tuesday slid in after-hours trading after the chipmaker issued downbeat guidance for the current quarter.
The Santa Clara, California-based company earned $3.38 billion, or 69 cents, during its third quarter. Earnings, adjusted for one-time gains and costs, were 80 cents per share.
The results exceeded Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 73 cents per share.
A year earlier, Intel earned $3.11 billion, or 64 cents per share.
The world’s largest chipmaker posted revenue of $15.78 billion in the period ended Oct. 1, also exceeding Street forecasts. Fifteen analysts surveyed by Zacks expected $15.55 billion. That’s up 9 percent from last year’s $14.47 billion.
The company said it posted “record” revenue in its data center group and internet of things group.
“These results show Intel’s continuing transformation to a company that powers the cloud and billions of smart, connected devices,” Brian Krzanich, Intel CEO, said in a statement.
For the current quarter ending in December, Intel said it expects revenue in the range of $15.2 billion to $16.2 billion. Analysts surveyed by data provider FactSet had expected revenue of $15.87 billion, higher than the midpoint of Intel’s guidance.
Intel shares fell 5.7 percent in after-hours trading, to $35.59. The stock had climbed roughly 10 percent since the beginning of the year, outpacing the 5 percent gain of the Standard & Poor’s 500 index.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on INTC at http://www.zacks.com/ap/INTC
Keywords: Intel, Earnings Report