Intel stock rose more than 7% in after-hours trading, after closing the session at $32.52 per share, following the Q3 2023 report. As of press moment, Intel stock is trading at $35.15. Its market cap has reached $137.49 billion. Year to date, Intel shares are up 23.04%.
The world’s largest manufacturer of central processing units and semiconductors Intel Corporation (NASDAQ: INTC) has Issued Its Q3 2023 report. The company managed to beat analysts’ forecasts for profit and sales, causing its share price to rise following the announcement.
Intel in the third quarter of 2023
For the third quarter of 2023, ended September 30, the company posted revenue of $14.2 billion, down 8% year over year. But despite the decline compared with the year-ago period, Intel managed to exceed the $13.53 billion expected by Wall Street. Earnings per share (EPS) totaled $0.07, while non-GAAP EPS for the quarter was $0.41. Analysts were later expecting a total of $0.22.
Additionally, Intel earned $5.8 billion cash from operations and paid a dividend of $0.5 billion.
Revenue was primarily driven by the Client Computing Group (CCG) – Intel’s unit responsible for the production of PC processors and related components. The unit includes Intel’s Core processor line. The division generated $7.9 billion in the third quarter, up 16% sequentially and exceeding the company’s expectations for the third consecutive quarter.
For other business units, Data Center and AI (DCAI) generated $3.8 billion, Network and Edge (NEX) generated $1.5 billion, Mobileye totaled $530 million and Intel Foundry Services (IFS) generated $311 million. Did.
Intel CEO Pat Gelsinger said:
“We delivered an outstanding performance in the third quarter, highlighted by overall progress on our process and product roadmaps, agreements with new foundry customers, and momentum in bringing AI everywhere. We are continuing to make meaningful progress on our IDM 2.0 transformation by continuing to advance our strategy, rebuild our execution engine, and deliver on our commitments to our customers.
Intel CFO David Zinsner said:
“Our results exceeded expectations for the third consecutive quarter, with revenues above the high end of our guidance and EPS benefiting from strong operating leverage and expense discipline. As our recent portfolio actions demonstrate, we are highly focused on being great allocators of our owners’ capital and unlocking value for shareholders.
As for fourth quarter guidance, the outlook is quite positive, with the company expected to generate revenues of $14.6 billion to $15.6 billion, EPS of $0.23, and non-GAAP EPS of $0.44. According to Dave Zinsner, Intel also expects gross margin to flow approximately 60% of revenue growth, resulting in fourth quarter gross margin of approximately 46.5% with a tax rate of 13% and EPS of $0.44.
Intel stock rose more than 7% in after-hours trading, after closing the session at $32.52 per share, following the Q3 2023 report. As of press moment, Intel stock is trading at $35.15. Its market cap has reached $137.49 billion. Year to date, Intel shares are up 23.04%.
intel restructuring business
Earlier this year, Intel announced a significant restructuring move to run its manufacturing business as a separate entity. Now, the manufacturing unit has customer-to-supplier relationships with other units of Intel. The company aims to make Intel Foundry Services the second-largest chip foundry with projected revenues of more than $20 billion by 2024.
Subsequently, Intel split its Data Platform Group into two pieces, namely the Datacenter & AI and Network & Edge groups. As seen from the income reports, revenue is also generated separately by these units.
The decision came after Intel reported a loss of $2.8 billion in its fiscal second quarter to 2023. The initiative will bring transparency that ‘highlights the true economics of the business by more directly measuring the financial performance of Intel teams with partners.’
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in exploring the ways in which blockchain can transform various industries and bring our lives to a different level.
More Read
Bitcoin Crypto Related Post
