Intel's third quarter results were better-than-expected as its data center group delivered record revenue that was up 26 percent from a year ago.
The chip giant reported net income[1] of $6.4 billion, or $1.38 a share, on revenue of $19.2 billion, up 19 percent from a year ago. Non-GAAP earnings were $1.40 a share.
Wall Street was expecting Intel to report third quarter non-GAAP earnings of $1.15 a share on revenue of $18.4 billion.
Intel's results come a day after AMD's third quarter revenue and outlook disappointed[2]. In addition, Intel has been struggling with manufacturing issues[3] and meeting demand[4].
Nevertheless, Intel's ability to provide infrastructure to cloud providers is carrying the team even as the company's PC processor division fared well.
Indeed, Intel's so-called data centric businesses revenue gains. For instance, Intel's memory business saw sales up 21 percent from a year ago. The Internet of things unit saw revenue grow 8 percent in the third quarter to $919 million.
CFO and interim CEO Bob Swan said the company remains focused. The company's plan is to cut operating expenses and funnel the funds in part into research and development.
On the PC processor front, Intel saw third quarter revenue of $10.2 billion, up 16 percent from a year ago. Notebook chip sales were up 13 percent from a year ago with desktop revenue up 9 percent.
For the fourth quarter, Intel projected revenue of about $19 billion with non-GAAP earnings of $1.22 a share. That outlook was better than what Wall Street was expecting.
Here's the outlook:
References
- ^ net income (s21.q4cdn.com)
- ^ AMD's third quarter