Intel Corporation (NASDAQ:INTC) reported a better-than-expected financial results for the third quarter of the current fiscal year with $3 billion profit of $0.58 earnings per share, an increase of 49% from the previous quarter. The company said its third quarter revenue was $13.48 billion, up 5% from the second quarter.
Intel Corporation’s third quarter financial results outperformed that the consensus estimate of $0.53 earnings per share on $13.46 billion revenue.
According to the company, its revenue of its Record Data Center Group climbed 12.2% year-over to $2.9 billion and the revenue of its PC Client Group fell 3.5% year-over year to $8.4 billion. Intel Corporation’s revenue from other operating segments fell by 9.3% year-over-year to $1.1 billion.
During the quarter, the company said its gross margin was 62.4% and tax rate was 25%. Its R&D and MG&A expensed was $4.7 billion, lower than its previous estimate at $4.8 billion. The company ended the third quarter with $19.1 billion total cash investments and $5.7 billion cash flow from operations.
According to the company, the financial results of the company increased because of cost control and better margins.
In a statement, Brian Krzanich, chief executive officer of Intel Corporation (NASDAQ:INTC) said, “The third quarter came in as expected, with modest growth in a tough environment. We’re executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems.”
Despite the good financial performance of the company, the shares of Intel Corporation plummeted by 2.26% to $22.87 per share after hours on Tuesday due to its lower revenue guidance for the fourth quarter.
Intel Corporation reduced its revenue forecast for the next quarter from $14 billion to $13.7 billion to reflect the order trends of its customers and their intention to keep inventory lean. The company also anticipated its gross margin to decrease by 1 point to 61% as it increases its 14nm factory spending.
During the period, Intel Corporation distributed $1.1 billion in dividends, repurchased stock worth $0.5 billion and purchased $2.9 billion in capital assets.