Intel Corporation (NASDAQ:INTC) released its latest earnings report after closing bell tonight, posting earnings of 66 cents per share. Revenue rose 8% year over year to $14.6 billion. Analysts had been expecting the tech company to report earnings of 64 cents per share on $14.4 billion in revenue. In the same quarter a year ago, Intel reported revenue of $13.5 billion and earnings of 58 cents per share.
Shares of Intel edged lower earlier today after Reuters inadvertently sent out an earnings alert that was actually for the company’s second quarter, which was reported in July.
Breaking down Intel’s earnings report
Operating income was $4.5 billion, a 30% year over year increase, while Intel generated about $5.7 billion in cash from operations. Intel said it set a new record for quarterly unit shipments for PCs, servers, phones, Internet of Things and tablets. This was also the first time Intel shipped over 100 million microprocessors during a quarter.
The company’s PC Client Group saw its revenue increase 9% year over year to $9.2 billion, while its Data Center Group’s revenue climbed 16% to $3.7 billion. The Internet of Things Group saw its revenue climb 14% year over year to $530 million. Intel’s Mobile and Communications Group revenue was $1 million during the quarter, while its Software and Services division saw a 2% increase in revenue, which rose to $558 million.
During the third quarter, Intel paid $1.1 billion in dividends and bought back 122 million shares of its stock for a total value of $4.2 billion.
Intel guides for fourth quarter
In tonight’s release, Intel also provided guidance for the current quarter. The company expects revenue to be around $14.7 billion and its gross margin to be around 64%. Intel expects to spend $4.9 billion on research and development and also mergers and acquisitions. The company projects about $45 million in restructuring charges and a tax rate of about 28%.
“We are pleased by the progress the company is making,” Intel CEO Brian Krzanich said in a statement. “We achieved our best-ever revenue and strong profits in the third quarter. There is more to do, but our results give us confidence that we’re successfully executing to our strategy of extending our products across a broad range of exciting new markets.”