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Intel shares higher as 3Q revenue, profit beat Wall Street estimates

The chipmaker says its positive results were powered by sales to data centers and easing concerns about slowing demand

Intel Corporation - Intel Corp shares jumped higher Friday a day after the company reported third-quarter revenue and profit that beat Wall Street estimates and raised its full-year revenue forecast
Intel’s results gave a boost to the industry facing some headwinds

Intel Corp (NASDAQ:INTC) shares jumped higher on Friday after the company reported third-quarter revenue and profit that beat Wall Street estimates and raised its full-year revenue forecast in an after-hours release on Thursday.

Intel shares recently traded up 7% at $55.88 in New York. 

The Santa Clara, California-based chipmaker on Thursday said its positive quarterly results were powered by sales to data centers and easing concerns about slowing demand during the US-China trade war.

Intel said net revenue was steady at $19.19 billion, beating estimates of $18.05 billion. Revenue from its higher-margin data center business rose 4% to $6.4 billion, while analysts were expecting revenue of $5.62 billion.

Excluding items, the company said it earned $1.42 per share, above estimates of $1.24 per share.

For the full year, Intel expects revenue of $71 billion, up from its earlier forecast of $69.5 billion. That came in above analysts’ estimate of $69.43 billion.

Chief Financial Officer George Davis said revenue could have been higher but Intel was unable to make enough chips for entry-level PCs.

“Demand has just outstripped our ability to add capacity,” Davis told Reuters in an interview. “In some ways it’s a good problem to have, but anytime you can’t satisfy your customers, that’s not a good outcome.”

Intel’s results gave a boost to the industry facing some headwinds. Major chipmakers Texas Instruments Inc (NASDAQ:TXN) and Xilinx Inc (NASDAQ:XLNX) earlier this week issued downbeat forecasts.

Contact the author: [email protected]

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Quick facts: Intel Corporation

Price: 48.19 USD

NASDAQ:INTC
Market: NASDAQ
Market Cap: $204.95 billion
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