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Investing.com – Intel (NASDAQ:INTC) plunged in after-hours Thursday as weaker margins and a lull in its data center business overshadowed better-than-expected third-quarter results and raised guidance.
Intel announced earnings per share of $1.11 on revenue of $18.33 billion. Analysts polled by Investing.com anticipated EPS of $1.1 on revenue of $18.22 billion. The stock fell 10% after hours.
Data-centric revenue fell 10% year-on-year for the quarter as the pandemic weighed performance in the internet of things group and the memory business, the company said.
PC-centric revenue was up 1 % on continued notebook strength to support the work- and learn-at-home trend as a result of the pandemic.
Third-quarter gross margin was 54.8% for the quarter, down from 60.4% a year earlier and missing consensus estimates from 56.8%.
Looking ahead, the company raised its full-year revenue and earnings expectations from July guidance.
The company now expects annual revenue growth of 5% to $75.3 billion and earnings of $4.90 per share.
“Now is perhaps one of the most disappointing times for Intel investors. The largest U.S. chip-maker is struggling to catch up to new technologies as its production of the most advanced chips falls behind schedule. Investors will continue to ignore strong revenue generation unless there are clear signs that the company is quickly able to transform its business to ward off competition and defend its market share,” Investing.com’s Haris Anwar said before the release of the results.
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