Intel Corp (NASDAQ:INTC) reported beats in its third quarter results and raised their guidance for the fourth quarter and full year, with shares of the chipmaker posting modest gains in the market on Friday.
The company said earnings per share (EPS) was at $1.40 on net income of $6.5 billion, against the year-ago EPS of $1.01 on income of $4.8 billion. Revenue came in at $19.2 billion, 19% higher than last year's $16.1 billion.
"In the third quarter, Intel achieved growth in every business segment. The PC-centric business (CCG) delivered record revenue, up 16 percent on continued strong demand for Intel's performance-leading products and strength in commercial and gaming," a company statement said.
Shares of Intel rose 3% to $45.64 in early trade on Friday.
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Fourth quarter guidance by the company is for EPS of $1.22 and revenue of $19 billion, versus EPS estimates $1.09 on revenue of $18.39 billion.
For the full year, Intel increased its guidance to EPS of $4.53 on revenue of $71.2 billion, compared to its prior guidance of $4.15 in EPS on revenue of $69.5 billion. The consensus is for EPS of $4.16 and revenue of $69.54 billion.
Opco stays on the sidelines
In a research note to clients on Friday, Oppenheimer Equity Research said the results and guidance were "solid" but that "share headwinds and limited growth/FCF leverage keep us sidelined here."
Rumors of Intel's demise are "greatly exaggerated," the report written by Rich Schafer said.
The note said catalysts for Intel are signs of a reacceleration in PCs and "increasing traction in faster growing cloud computing, Internet of things, and 3D memory markets."
The downside risks are faster deterioration of PC units, incremental pressure in both mobile and PCs among others, Oppenheimer said.
Intel is a technology company. The company is based in Santa Clara, California.
Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com