Intel CEO Robert “Bob” Swan unveiled the new Chipgroup microprocessor “Tiger Lake” at the Technology Fair CES in Las Vegas on January 7, 2020.
Christoph Dernbach | Image Alliance | Getty Images
Intel’s share price fell 10% in Thursday’s extended deal after reporting stronger third-quarter earnings than analysts expected, but showed new weaknesses in the data center business.
The company’s way is as follows.
- Revenue: According to Refinitiv, analysts expected $ 1.11 per share, compared to adjusted $ 1.11 per share.
- Revenue: According to Refinitiv, it’s $ 18.33 billion, compared to what analysts expected at $ 18.25 billion.
Overall, Intel’s revenues for the quarter ending September 26 fell by 4% on an annualized basis, the statement said. Revenue increased 20% in the previous quarter.
Intel’s data center group revenue was $ 5.91 billion, down 7%, below FactSet’s consensus estimate of $ 6.21 billion. According to Intel, the coronavirus pandemic reduced corporate and government revenues by 47% after a two-quarter growth of over 30%, while quarterly cloud revenues increased by 15%. Average selling prices across the sector were 15% lower than in the year-ago quarter.
Intel’s largest business, the Client Computing Group, which sells PC chips, generated revenue of $ 9.85 billion, up 1% year-on-year, and the consensus among analysts surveyed by FactSet exceeded $ 9.09 billion. Earlier this month, technology research firm Gartner estimated that PC shipments increased 3.6% in the third quarter as people continued to buy machines to work and study from home.
Intel’s Non-Volatile Memory Solutions Group’s revenue was $ 1.15 billion, down about 11% to below the $ 1.5 billion consensus. South Korean memory maker SK hynix announced on Tuesday that it will acquire Intel’s NAND memory and storage business, which is part of its division, for $ 9 billion.
Intel’s operating margin shrank from 33.6% in the year-ago quarter to 27.6%. The data center group’s operating margin has reached 49% to 32%.
Regarding guidance, Intel said it expects fourth-quarter sales of $ 17.4 billion and adjusted earnings per share of $ 1.10. Forecasts mean a decrease of about 14%. Analysts surveyed by Refinitiv wanted adjusted earnings per share of $ 1.07 and revenue of $ 17.36 billion.
In July, executives said Intel was evaluating how to start relying on other companies to make chips, and on Thursday CEO Bob Swan said Intel should be able to explain the decision in January. ..
“I think I’m very confident that it can be ported to TSMC,” Swan said, referring to a Taiwanese manufacturer. He said he was “more and more confident” that he could regain manufacturing as Intel became more dependent on TSMC.
Intel announced the resignation of engineering leader Murthy Renduchintala in the third quarter, stating that McKinsey executive Safroadu Yeboah-Amankwah will join as chief strategy officer.
During the quarter, Intel did not announce progress on its goal of raising the ranks of women in leadership positions and minorities. The company last released its statistics in December, stating that 72.6% of its global workforce is male and 61.2% of its US workforce is white or Asian.
Excluding off-hours movements, Intel’s share has declined by about 10% since early 2020 and the S & P 500 has increased by 7%.
Since the announcement, competing chip maker AMD’s share has risen by as much as 2% in extended transactions.
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to see: Complete interview with CNBC’s Intel CEO Bob Swan