Intel Announces Good Third Quarter Financial Results

Intel's shares rose as much as 6 percent, but then slashed much of its earnings, after the company reported better-than-expected third-quarter earnings and a full-year guidance.

Intel earnings are better than expected

Intel's revenue increased 19 percent year-over-year, according to a statement. That's stronger than 2 percent growth in the third quarter of 2017. Going forward, Intel forecast earnings of $ 1.22 per share, with $ 19 billion in revenue in the fourth quarter. Analysts had expected fourth quarter earnings of $ 1.09 per share, with $ 18.39 billion in revenue.

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Intel's largest business segment, the Client Computing Group, reached $ 10.23 billion in revenue in the second quarter, easily surpassing FactSet analyst consensus of $ 9.33 billion. Intel's second largest segment, the Data Center Group, generated $ 6.14 billion in revenue, above the estimate of $ 5.89 billion. And Intel's Nonvolatile Memory Solutions Group earned an estimated revenue of $ 1.14 billion, generating $ 1.08 billion in revenue.

The company's shares fell 3.2 percent this year, while most of the big tech companies posted gains and the Nasdaq rose 6.6 percent. Brian Krzanich resigned as CEO in June, and Intel has been looking for his replacement. Meanwhile, the company has lagged behind in rolling out the technology for future generations of chips, though it is making progress on 10-nanometer chips, which are expected to be more energy efficient than previous processors.

The status of the 10-nanometer process would likely be of central importance to analysts at the call, along with the CEO hunt, the opportunity for growth in the data center market and the potential for gross margin in 2019. Regarding the process At 7 nanometers, the company has been investing there and that the investment rate it makes to "test" the technology would be considered in capital expenditures next year.

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