Intel Shares Rise After Earnings Beat is Reported

Shares of Intel were moving higher after the company reported an earnings beat in its latest quarter and said it returned to growth.

The company beat expectations on both the top and bottom lines, and guidance also exceeded estimates.

Shares were soaring as much as 8% in extended trading on Thursday.

For the quarter that ended on Sept. 28, earnings excluding certain items were $1.42 per share, vs. $1.24 per share as expected by analysts, according to Refinitiv. Revenue was $19.19 billion, vs. $18.05 billion as expected by analysts, according to Refinitiv.

CEO Bob Swan told analysts on a Thursday conference call, “We expect our second-half PC client supply will be up double-digits compared to the first-half, and we expect to further increase our PC client supply by mid-to-high single-digits in 2020, but that growth hasn’t been sufficient.”

He added, “We’re letting our customers down and they’re expecting more from us.” Demand strength for PC chips is still outstripping supply, said the company’s chief financial officer, George Davis.

The company’s top business segment, the Client Computing Group, which sells processors for desktop PCs, laptops and two-in-one devices, produced $9.71 billion in revenue in the third quarter, beating the $9.59 billion average estimate among analysts polled by FactSet. The number was a 5% decrease from the year ago quarter however.

Disclaimer: We have no position in Intel Corporation (NASDAQ: INTC) and have not been compensated for this article.