Intel (NASDAQ: INTC) shares galloped early Friday even though the semiconductor giant gave a revenue outlook that suggested sales are slowing down heading into the end of the year.
The company known colloquially as “Mr. Chips” said that for its current, fiscal fourth quarter, it expects to earn 20 cents a share, excluding one-time items, on revenue of between $14 billion and $15 billion. That outlook suggests that Intel's sales could fall as much a 31% from the fourth quarter in 2021.
The company also lowered its full-year revenue estimate to a range of $63 billion to $64 billion, from an earlier forecast of $65 billion to $68 billion in sales.
While its forecasts left something to be desired, Intel reported third-quarter earnings that surpassed Wall Street's expectations.
Intel said it earned 59 cents a share, excluding one-time items, on revenue of $15.3 billion for the quarter ending September 30. Analysts had earlier forecast that Intel would earn 33 cents a share on $15.3 billion in revenue. During the year-ago period, Intel earned $1.45 a share on revenue of $18.1 billion.
It was a rough quarter for Intel, as sales in its main business areas declined from a year ago. For its main business areas, Intel's client computing group, which includes sales of chips and technology for consumers and businesses, turned in revenue of $8.1 billion, down 17% from the third quarter in 2021, and data center sales of $4.2 billion, which fell X27%.
Chief Executive Pat Gelsinger said in a statement that "despite worsening economic conditions," Intel "made significant progress with our product and process execution" during the quarter.
INTC shares climbed $2.11, or 8%, to $28.38 Friday morning.
Tech Insider
