Intel Corp (NASDAQ:INTC, ETR:INL) reported stronger-than-expected third quarter results, with revenue and adjusted earnings per share beating Wall Street estimates, but its fourth quarter guidance came in slightly below expectations amid ongoing strategic shifts
The designer and manufacturer of computer components reported Q3 revenue of $13.7 billion, up 3% from the year-ago quarter and ahead of estimates of $13.15 billion.
Adjusted earnings per share (EPS) were $0.23, far ahead of the consensus $0.01 and a significant improvement from a loss per share of $0.46 in Q3 last year.
However, the company’s Q4 forecast was short of Wall Street expectations because they do not include revenue from Altera, a semiconductor firm which was partly divested by Intel during Q3.
The company projected revenue in the range of $12.8 billion to $13.8 billion, at the midpoint of $13.3 billion below estimates of $13.4 billion.
Adjusted EPS were guided at $0.08, below estimates of $0.10.
“Our Q3 results reflect improved execution and steady progress against our strategic priorities,” Intel CEO Lip-Bu Tan said in a statement.
David Zinsner, Intel CFO, added: “We took meaningful steps this quarter to strengthen our balance sheet, including accelerated funding from the U.S. Government and investments by NVIDIA and SoftBank Group that increase our operational flexibility and demonstrate the critical role we play in the ecosystem.”
Shares of Intel traded higher following the release of its earnings, up 3.1% at about $38.