Intels revenue in the third quarter was $18.3 billion, and its net profit was $4.7 billion, down 26percent

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 Intels revenue in the third quarter was $18.3 billion, and its net profit was $4.7 billion, down 26percent


Here are the highlights of Intels third quarter results:

u2014u2014Intels third quarter revenue was $18.33 billion, down 4% from $19.2 billion in the same period last year, but higher than analysts consensus forecast of $18.25 billion;

u2014u2014Intels net profit in the third quarter was $4.7 billion, down 26% from $6.3 billion in the same period last year;

u2014u2014Intels earnings per share in the third quarter was $1.11, down 22% from $1.42 in the same period last year, basically in line with analysts expectations;

Intels biggest business is customer computing group, which sells PC chips, with revenue of $9.85 billion, up 1% year-on-year, higher than analysts consensus forecast of $9.09 billion. Earlier this month, market research firm Gartner estimated PC shipments rose 3.6% in the third quarter as people continued to buy PCs to work and study from home.

Intels nonvolatile memory solutions division had revenue of $1.15 billion, down about 11% from a year earlier, lower than the $1.5 billion widely expected. Earlier, Hynix, a South Korean chip maker, said it would buy Intels NAND memory and storage business for $9 billion.

Intels operating profit margin narrowed to 27.6% from 33.6% in the same period last year, while the operating profit margin of data center group decreased from 49% to 32%. So far this year, Intels operations have generated $25.5 billion in cash and $15.1 billion in free cash flow, and paid $4.2 billion in dividends.

Although we have been affected to a large extent by the epidemic, we have achieved a robust third quarter performance that is beyond expectations, said Bob swan, Intels chief executive. In the nine months to 2020, we forecast growth to be a record, despite the massive demand changes and economic uncertainty we have managed to overcome. We remain confident in our strategy and the long-term value we will create, as we offer leading products with the goal of gaining more share in a diversified market driven by the rise of data, artificial intelligence, 5g networks and edge computing.

Intel also released its fourth quarter and full year earnings forecasts, with fourth quarter earnings per share of $1.1 and revenue of $17.4 billion, down about 14%. Analysts expect Intels fourth quarter earnings per share of $1.07 and revenue of $17.36 billion. Intel estimates that revenue in 2020 will grow 5% year-on-year to $75.3 billion, with earnings per share of $4.9.

In the third quarter, Intel announced the departure of Murthy renduchintala, its engineering director, and said McKinsey executive safroadu Yeboah amankwah would join as Chief Strategic Officer.

Although Intels revenue and earnings per share were higher than analysts expected, the weak performance of its data center business drove the stock down nearly 10% after the financial report was released. Excluding after hours trading, Intels share price has fallen about 10% since the beginning of 2020, while the S & P 500 is up 7%. (small)

Source: Qiao JunJing, editor in charge of Netease science and Technology Report_ NBJ11279