Intel Tops Q3 Estimates
Intel Corporation (NASDAQ: INTC) reported better-than-expected earnings for its third quarter on Tuesday.
The Santa Clara, California-based company reported quarterly net income of $3.11 billion, or $0.64 per share, compared to $3.32 billion, or $0.66 per share, in the year-earlier period.
Its revenue declined to $14.47 billion from $14.55 billion. However, analysts were expecting a profit of $0.59 per share on revenue of $14.22 billion.
The average estimate among 226 Estimize users was for earnings of $0.60 per share and revenue of $14.24 billion.
Client Computing Group revenue declined 7 percent year-over-year to $8.5 billion, while Data Center Group revenue gained 12 percent to $4.1 billion in the latest quarter. Internet of Things Group revenue jumped 10 percent year-over-year to $581 million, while Software and services operating segments revenue came in flat year-over-year at $556 million.
Gross margin shrank to 63 percent from 65 percent.
"We executed well in the third quarter and delivered solid results in a challenging economic environment," said Brian Krzanich, Intel CEO. "The quarter demonstrates Intel innovation in action. Customers are excited about our new 6th Gen Intel Core processor, and we introduced our breakthrough 3D XPoint™ technology, the industry's first new memory category in more than two decades."
For the fourth quarter, the company projects revenue of $14.8 billion, plus or minus $500 million. The company now expects 2015 capital expenditure of $7.3 billion, plus or minus $500 million.
Intel shares rose 0.28 percent to $32.13 in the after-hours trading session.
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