Shares of Intel Fell Despite Beating Earnings

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.

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