Shares of Intel rose by 6% but pared back most of those gains late Thursday after the posting of earnings for the third quarter and guidance for the full year that were better than had been expected.
Intel posted earnings per share of $1.40 excluding special items, while Wall Street analysts were expecting $1.15. Revenue for the quarter ended at $19.15 billion, while Wall Street was expecting just $18.11 billion.
Revenue for Intel rose 19% year over year and was stronger than the 2% growth during the 2017 third quarter.
Looking forward, Intel forecasted earnings per share of $1.22 excluding special items, with revenue of $19 billion during the fourth quarter. Wall Street was expecting earnings per share for the fourth quarter of $1.09 excluding special items on revenue of $18.39 billion.
Intel increased its guidance for its full year to earning per share of $4.53 on revenue of $71.2 billion while Wall Street was expecting earnings of $4.15 a share with revenue coming in at $69.54 billion.
The largest business sector at Intel, its Client Computing Group, ended its quarter with revenue of $10.23 billion, which easily beat analyst’s estimates of $9.32 billion.
The second biggest sector, its Data Center Group, ended the quarter with revenue of $6.14 billion which came in higher than the expected $5.89 billion. The Non-Volatile Memory Solutions Group finished with revenue of $1.08 billion which was less than estimates by analysts for $1.14 billion.
This year shares of Intel are down 3.2%, while the majority of large tech businesses have seen gains as Nasdaq, which is heavy in tech stocks, has increased 6.6%.
In June, Brian Krzanich stepped down as CEO and no successor has been found yet.
At the same time, the company has delayed the deployment of technology for the futures generations of its chips, which most expect to be more efficient and powerful that prior processors.
The CFO of Intel Bob Swan said the company had repositioned some of its 10-nanometer to 14-nanometers and was making progress with its 10-nanometer process technology. Following those remarks during a conference call shares of Intel were sold off.
During the fourth quarter, the biggest challenge for Intel is meeting demand for internet of things and PC products that is beyond what has already is built into it guidance added Swan.