Intel released its latest earnings report after closing bell tonight, posting non-GAAP earnings of 80 cents per share on revenue of $15.8 billion. Analysts had been expecting the chip maker to report earnings of 73 cents per share on $15.58 billion in revenue.
In last year’s third quarter, the company reported 64 cents per share in earnings on $14.46 billion in sales. Intel increased its third quarter outlook in September due to inventory replenishment for its PC supply chain. The new guidance called for $15.6 billion in sales, +/-$300 million, compared to management’s previous outlook of $14.9 billion, +/-$500 million.
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Intel posts record Data Center and IoT revenues
Intel’s GAAP earnings grew to 69 cents per share from last year’s 54 cents per share. The chip maker had guided for a gross margin of around 63%, but it managed a GAAP gross margin of 63.3% and a non-GAAP gross margin of 64.8%. Last year’s margins were 63% and 63.5%, respectively.
Intel’s Client Computing Group revenue grew 5% year over year to $8.9 billion, while its Data Center Group revenue increased 10% to $4.5 billion. Revenue from the Internet of Things segment ticked upward 19% from last year to $689 million, while non-Volatile Memory Solutions revenue declined 1% to $649 million. Intel Security Group revenue increased 6% year over year to $537 million, while Programmable Solutions revenue declined 9% quarter over quarter to $425 million.
Intel guides for a weak Q4
For the fourth quarter, the chip maker expects $15.7 billion in sales, +/-$500 million, and a gross margin of 61% on a GAAP basis and 63% on a non-GAAP basis, +/- a couple of percentage points on both of those. Analysts are currently expecting Intel to post 77 cents per share in earnings and $15.86 billion in the fourth quarter.
The company now expects total restructuring and other charges to amount to $2.3 billion, with most of the rest of the charges due between now and the middle of next year. It projects that $250 million of that will come in the fourth quarter.
Shares of Intel tumbled in after-hours trades, falling by as much as 3.52% to $36.41.