Intel delivers strong Q3 as data businesses drive growth
Intel on Thursday delivered better-than-expected third quarter financial results and set an all-time quarterly record for revenue. The tech giant reported a net income of $5.9 billion, or $1.35 per share.
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Non-GAAP earnings were $1.42 per share on revenue of $19.2 billion. Wall Street was looking for earnings of $1.24 per share with $18.05 billion in revenue.
Looking closer at the numbers, Intel's data center unit rang up $6.4 billion in revenue during the quarter, up 4% year over year. The Internet of things business grew 9% year-over-year to deliver $1 billion in revenue. Meanwhile, Intel's client computing group saw revenue decline 5% to $9.7 billion.
In terms of guidance, Intel is forecasting full year revenue of $71 billion and earnings of $4.60 per share, up from its previous forecast. Analysts are looking for revenue of $69.43 billion and earnings of $4.39 a share.
For the current quarter, Wall Street is looking for non-GAAP earnings of $1.21 per share with $18.82 billion in revenue. Intel with fourth quarter EPS of $1.24 and revenue guidance of $19.2 billion. Shares of Intel were up more than 7% in after market trading.
"We've been on a multiyear journey to reposition Intel's portfolio to take advantage of the exponential growth of data. Our third-quarter financial performance underscores our progress as our data-centric businesses turned in their best performance ever, making up almost half our total revenue in a record quarter," said Bob Swan, Intel CEO. "Our priorities are accelerating growth, improving our execution and deploying capital for attractive returns. We now expect to deliver a fourth record year in a row."