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Intel profit down, but better than expected

Intel Corp. CEO Paul Otellini said the company’s third-quarter profit and sales fell, but both numbers were better than Wall Street projected. (File Associated Press / The Spokesman-Review)
Benjamin Pimentel MarketWatch

SAN FRANCISCO – Intel Corp. on Tuesday reported a dip in third-quarter profit, but posted results and a fourth-quarter outlook that exceeded Wall Street expectations.

Chief Executive Officer Paul Otellini cited the “momentum in the current economic climate” that paved the way for the Santa Clara, Calif.-based tech behemoth’s results.

One analyst said the chip giant’s results showed that manufacturers “made big bets” on the fourth quarter, and bode well for the broader tech industry.

Shares of Intel jumped more than 5 percent in after-hours trading. Shares of other major chip makers rose as well.

Intel, the world’s biggest semiconductor company, reported a third-quarter profit of $1.9 billion, or 33 cents a share, compared with a profit of $2 billion, or 35 cents a share for the year-earlier period.

Revenue was $9.4 billion, down from $10.2 billion for the same period last year.

Analysts had expected Intel to report earnings of 28 cents a share, on revenue of $9 billion, according to a consensus survey by FactSet Research.

For the current quarter, Intel expects revenue of $10.1 billion, plus or minus $400 million. Analysts had expected the company to report sales of $9.5 billion.