Intel Tops Lowered Earnings Expectations
NEW YORK (TheStreet) -- Shares of Intel (INTC) were lower in late trades Tuesday after the world's biggest semiconductor maker topped lowered expectations for its third-quarter results but said it continues to see weak demand across the globe.
The Dow component posted net income of $3 billion, or 58 cents a share, for the three months ended Sept. 30 on revenue of $13.5 billion. That performance compared with a profit of $2.8 billion, or 54 cents a share, in the second quarter with revenue flat on a sequential basis.
On a non-GAAP basis, Intel earned $3.1 billion, or 60 cents a share, in the latest quarter.
The average estimate of analysts polled by Thomson Reuters was for earnings of 49 cents a share on revenue of $13.23 billion in the third quarter.
"Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel's president and CEO, in a statement. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."
Last month, the Dow component lowered its third-quarter outlook, citing "...softness in the enterprise PC market segment; and slowing emerging market demand." The tech bellwether had forecast third-quarter sales to be between $12.9 billion and $13.5 billion, well below its prior forecast of $13.8 billion to $14.8 billion.
Gross margins came in at 63.3%, slightly above Intel's prior guidance of 61% to 63%. Intel previously expected gross margins to be between 61% and 65%.
For the fourth-quarter, Intel expects revenue of $13.6 billion, plus or minus $500 million. Non-GAAP gross margins are expected to be between 57% and 58%, plus or minus a couple of percentage points. The topline view is slightly below the $13.74 billion in sales analysts polled by Thomson Reuters expect.
Intel plans to hold a conference call at 5 p.m. ET to discuss the results.
Intel shares were higher in Tuesday's regular trading, up 2.85% to close at $22.35. The stock was down in the wake of the numbers, last quoted at $21.86, off 2.2%, on volume of 7.82 million, according to Nasdaq.com.
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--Written by Chris Ciaccia in New York
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