Intel Shares Rise After Positive Q3 Earnings Report

Intel Corp. (NASDAQ: INTC) saw its shares jump by an impressive 6% during pre-market trading on Friday, reflecting a positive reaction from investors.

This jump was triggered by the release of the company’s third-quarter earnings report, which notably exceeded Wall Street's predictions.

On Thursday, Intel shares closed at $21.52. The report indicated that the company experienced a loss of 46 cents per share, which was considerably worse than the anticipated loss of just 2 cents. However, revenue for the quarter reached $13.28 billion, outpacing the consensus forecast of $13.02 billion.

Pat Gelsinger, CEO of Intel, highlighted the company’s focus on improving costs and efficiency. He stated, “Our Q3 results underscore the solid progress we are making against the plan we outlined last quarter.”

Gelsinger also noted that Intel has successfully managed to reduce inventory levels for its clients, keeping in line with the company’s expectations. He expressed optimism about the future, suggesting that despite ongoing efforts to lower inventory, the Client Computing Group (CCG) is poised for growth toward the higher end of seasonal norms.

Looking ahead, Intel projects fourth-quarter revenue to be between $13.3 billion and $14.3 billion, with a midpoint expectation of approximately $13.8 billion. The company anticipates a gross margin of around 39.5% and expects an earnings per share (EPS) of 12 cents on a non-GAAP basis for the upcoming quarter.

Additionally, Intel expects to incur more restructuring costs as part of its continuous push for efficient operations and cost-saving initiatives.

This article incorporates insights from financial analysts and experts.

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