Intel's Q3 results above estimates, guidance moderately below; -3.8% after hours

|About: Intel Corporation (INTC)|By:, SA News Editor

Intel's (NASDAQ:INTC) Q3 is highlighted by 9.1% Y/Y revenue growth and 21% Y/Y net income ($3.9B) growth. Further records gross margin of 64.8%, operating income of $5.1B, EPS of $0.80, cash from operations of $5.8B, paid dividends of $1.2B and share repurchases of  $457M.

Key business unit revenues: Client Computing Group – $8.9B (+21% Q/Q, +5% Y/Y), Data Center Group – $4.5B (+13% Q/Q, +10% Y/Y), IoT Group – $689M (+20% Q/Q, +19% Y/Y), Non-Volatile Memory Solutions Group – $649M (+17 Q/Q, -1% Y/Y), Intel Security Group – $537M (unchanged Q/Q, +6% Y/Y, Programmable Solutions Group – $425M (-9% Q/Q).

Projections: Q4 revenue of $15.7B (+/- $500M) [$15.87B consensus], gross margin of 63% (+/- few percentage points), R&D plus MG&A spending of $5.2B, amortization of acquisition-related intangibles included in operating expenses at $0, impact of equity investments and interest and other, net at -$100M, depreciation of $1.5B and tax rate of 22%. For FY 2016, models no non-GAAP restructuring charges and $9.5B (+/-$500M) in full-year capital spending. Remainder of total restructuring and other charges of $2.3B to primarily be recorded between now and mid-2017, with $1.8B realized to-date and $250M anticipated for Q4.

Brian Krzanich, Intel CEO: "It was an outstanding quarter, and we set a number of new records across the business. In addition to strong financials, we delivered exciting new technologies while continuing to align our people and products to our strategy. 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."

Despite the after-hours downturn, Intel shares are still presently up 1.2% since yesterday's close.

Conference call

CFO commentary

Press release