Intel Reports Solid 3rd Quarter Earnings But With Cautious 4th Quarter Outlook
Computer chip maker Intel recently reported a solid third quarter with better than expected earnings. But outlook for the fourth quarter remains cautious as not all business groups within the company enjoyed earnings improvements. The company reported third quarter earnings of $ 3 billion from a revenue of $ 13.5 billion, just similar to the revenue numbers reported from a year ago. This accounts for 58 cents a share, slightly higher than the Wall Street outlook of 53 cents a share from revenue of $ 13.46 billion.
But at the same time, Intel gave a more cautious outlook for the fourth quarter, giving a revenue estimate of $ 13.7 billion, lower than Wall Street estimates of $ 14 billion. The company is not keen of any prospects of PC upgrades for the fourth quarter, even though they already have launched a number of new processors. They are expected to fill the need for devices in line with the Windows 8.1 update, especially for 2-in-1 systems.
Breaking down the third quarter revenue further, Intel saw improved numbers from its data center group. It posted revenue of $ 2.9 billion, which is up 12.2 percent from a year ago. The other business groups did not fare as well, however. Intel’s PC client group posted $ 8.4 billion in sales, down by 3.5 percent from the same period last year. The other Intel architecture unit saw a third quarter revenue of $ 1.1 billion, which is down 9.3 percent from the same period last year. This provided Intel with basis for their cautious outlook for the fourth quarter.
Tags: Cautious, Earnings, Intel, Outlook, Quarter, Reports, Solid
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