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 data center groups revenue in the third quarter was $5.91 billion, down 7% from a year earlier, lower than analysts consensus forecast of $6.21 billion. Intel said that novel coronavirus pneumonia outbreaks declined by 47% from business and government revenue in the two quarter of 30%, but the cloud revenue increased 15% in the quarter and the average sales price in the whole sector dropped by 15%.
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.
Bob swan, Intels chief executive, said: although we were largely affected by the epidemic, our third quarter results exceeded our previous expectations. In the nine months into 2020, we forecast record growth. We remain confident in our strategy and the long-term value we will create as we provide leading products with the goal of gaining more share in the 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.
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