Intel shares rose about 6% in after-hours trading after the company reported third-quarter earnings on Thursday that beat expectations for profit and sales, even as overall revenue declined.
Here’s how Intel did versus LSEG (formerly Refinitiv) consensus expectations for the quarter ended October 1:
- Earnings per share: 41 cents, adjusted, versus 22 cents expected
- Revenue: $14.16 billion, versus $13.53 billion expected
For the fourth quarter, Intel expects earnings of 23 cents per share, adjusted, on revenue of $14.6 billion and $15.6 billion, versus LSEG expectations of 32 cents per share on $14.31 billion in sales.
Intel posted GAAP net income of $297 million, or 7 cents per share, versus net income of $1.02 billion, or 25 cents per share in the same quarter last year.
Revenue fell 8% from $15.33 billion a year ago, the seventh consecutive quarter of declining sales.
Intel CFO David Zinsner said in a statement that the company’s earnings per share benefited from thhe company controlling expenses. Intel said it has 120,300 employees, down from 131,500 last year.
Here’s how Intel’s business units performed:
- Sales in Intel’s Client Computing group, including laptop and PC processor shipments, were down 3% to $7.9 billion.
- Intel’s Data Center and AI division, which offers server chips, saw sales decline 10% to $3.8 billion.
- Mobileye, a publicly-traded Intel subsidiary for self-driving car parts, was a bright spot, growing 18% to $530 million in sales.
- Intel foundry services, the company’s nascent chip manufacturing business, remains a small business with $311 million in revenue, but it grew nearly 300% on an annual basis.
- Intel’s network and edge division, which sells networking parts, reported sales down 32% to $1.5 billion.
Earlier this month, Intel said it would treat its programmable chip unit as a standalone business, and would seek to list it on public markets in the coming years. It’s currently part of Intel’s Data Center and AI group.
Intel said that it remains on track to catch up with Taiwan Semiconductor Manufacturing Company’s chipmaking technology by 2025, a plan the company calls “five nodes in four years.”