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On Thursday, Intel shares fell as much as 10% as reported by fiscal third-quarter earnings.
Here’s how the company did:
- Income: $ 1.11 per share, adjusted, vs. $ 1.11 per share as expected by analysts, according to Refinitiv.
- Revenue: According to Refinitive, $ 18.33 billion expected by analysts, $ 18.25 billion.
Overall, Intel’s revenue in the quarter, which ended on September 26, declined 4% on an annual basis, according to a statement. Revenue grew 20% in the prior quarter.
Intel’s data center group came in with $ 5.91 billion in revenue, down 7% and lower than the FactSet consensus estimate of 6.2% billion. Intel said that the revenue of enterprises and governments declined by 47% after two quarters of more than 30% due to the coronovirus epidemic, but cloud revenue grew 15% in the quarter. The average sales price across the division was 15% lower than the year before.
Intel’s largest business, the client computing conglomerate that sells PC chips, generated more than $ 9.09 billion in revenue among analysts provided by FactSet and $ 9.85 billion in revenue over $ 9.09 billion during the year. Earlier this month technology research company Gartner estimated that PC shipments grew by 3.6% in the third quarter, as people continued to buy machines to work and study at home.
Intel’s Non-Volatile Memory Solutions Group had $ 1.15 billion in revenue, down nearly 11% and a $ 1.50 billion consensus. On Tuesday, South Korean memory maker SK Hynix said it would buy part of that division, Intel’s NAND memory and storage business, for $ 9 billion.
Intel’s operating margin was limited from 33.6% to 27.6% in the year-ago quarter. Operating margin for the data center group reached 32%, down from 49%.
In relation to the guidance, Intel said it expected $ 1.10 in adjusted earnings on $ 17.4 billion in revenue in the fiscal fourth quarter. Revenue estimates are down by about 14%. Analysts provided by Refinitive were looking for $ 1.07 in adjusted earnings per share and $ 17.36 billion in revenue.
In the quarter, Intel announced the departure of engineering leader Murthy Renduchintala and said McKinsey executive Sefradu Yeba-Amanakwa was joining as chief strategy officer.
During the quarter, Intel did not announce progress on its goal of raising the ranks of women and minorities to leadership positions. The company last released figures in December, stating that 72.6% of its global workforce was male and 61.2% of American employees were White or Asian.
Excluding After-Hours, Intel shares are down nearly 10% since the beginning of 2020, while the S&P 500 is up 7%.
Shares of competing chipmaker AMD rose 2% after the announcement.
The executive will discuss the results with analysts on a conference call starting at 5 pm Eastern time.
This is breaking news. Please check back for updates.
Watch: CNBC’s full interview with Intel CEO Bob Swan