Intel Corporation (NASDAQ:INTC) announced its financial results for the third quarter that beat consensus forecast, but projected revenue for the fourth quarter below analysts’ estimates.
Third quarter results were driven by improving demand for personal computers and growth in its data center and cloud segments. Revenue from the data center business jumped 9.7 percent to $4.54 billion in the latest quarter. CEO Brian Krzanich expects revenue from the data center business to be in the high single digits for the full year.
Revenue from INTC’s traditional PC business jumped 4.5 percent to $8.89 billion. The segment still accounts for more than half of the company’s total sales.
Overall, the Santa Clara, California-based company posted revenue of $15.78 billion for the three-month period ended Oct. 1, up 9.1 percent from the same period last year, and above consensus forecast of $15.58 billion.
Net income jumped to $3.38 billion, or 69 cents a share in the third quarter, as compared to $3.11 billion, or 64 cents a share, in the year-earlier quarter. On an adjusted basis, earnings were 80 cents a share, beating the average analysts’ estimate of 73 cents a share.
Looking forward, the company is anticipating revenue of $15.7 billion, plus or minus $500 million, for the current quarter. Analysts surveyed by Thomson Reuters were looking for a revenue of $15.86 billion.
Intel shares fell more than 5 percent in the after-hours trading session following lower-than-expected revenue outlook for the fourth quarter. INTC stock has surged about 8 percent so far this year. The 52-week range of the stock is $27.68-$38.36. The company’s market cap is $177.83 billion and P/E ratio of 18.22.