On Tuesday, shares of Intel fell despite beating consensus estimations after the company’s outlook for next quarter’s revenue disappointed investors. For its next quarter, the company expects to report $15.7 billion in revenue compared to analysts forecast of $15.87 billion. For its earnings, the company reported Q3 EPS of $0.80 on revenues of $15.78 billion. Analysts expected EPS of $0.73 on revenues of $15.58 billion.
Executive Vice President Stacy Smith told CNBC's "Closing Bell" that revenue guidance is lower in the fourth quarter primarily because of start-up costs for the company's next-generation manufacturing processor. CEO Brian Krzanich said that Intel's third-quarter results were driven by the company's transformation to new business like cloud services.
"We're executing well, and these results show Intel's continuing transformation to a company that powers the cloud and billions of smart, connected devices," he said in his statement.
In a conference call, Krzanich said the PC market is a "bit stronger." He said the company saw its strongest growth in business PCs, or the non-consumer segment of the market. He added the consumer segment is "better but not back to where we would like to see,” said CNBC.