Does Intel Deserve More Credit for Q3 Earnings?
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Intel Corp. (NASDAQ: INTC | INTC Price Prediction) reported third-quarter financial results after markets closed Thursday. The firm said that it had $1.11 in earnings per share (EPS) and $18.33 billion in revenue, compared with consensus estimates that called for $1.10 in EPS and $18.22 billion in revenue. The same period from last year had $1.42 in EPS and $19.19 billion in revenue.
Intel achieved solid third-quarter revenue with data-centric revenue declining 10% and PC-centric revenue increasing 1% year over year. These results were driven by continued strength in notebook sales, which helped offset COVID-driven headwinds affecting significant portions of our business.
In terms of the specifics, DCG revenue grew 15% year over year, to $5.9 billion. As a part of this, Internet of Things Group revenue was down 26% to $911 million and Mobileye revenue increased 2% year over year to $234 million.
Intel’s memory business posted another solid quarter with revenues decreasing nearly 11% to $1.15 billion. PSG’s second-quarter revenue was down 19% to $411 million.
The PC-centric business was up 1% to $9.85 billion, driven by continued notebook strength to support the work- and learn-at-home dynamics of COVID-19.
On the books, cash, cash equivalents, and short-term investments totaled $6.34 billion at the end of the quarter, versus $5.28 billion at the end of the previous fiscal year.
Looking ahead to the fourth quarter, the company expects to see EPS of $1.10 and revenue of $17.4 billion. Consensus estimates are calling for $1.06 in EPS and $17.34 billion in revenue for the coming quarter.
Shares of Intel closed Thursday at $53.90, with a 52-week range of $43.63 to $69.29. The consensus analyst price target is $56.59. Following the announcement, the stock traded down over 9% at $48.95 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
