Intel (INTC) reported earnings on Thur 22 Oct 20 (a/h)

 ** charts before earnings **

 

** charts after earnings **

 

Intel CEO Bob Swan

Intel reports EPS in-line, revs in-line; guides Q4 EPS in-line, revs in-line, DCG's Enterprise & Govt segment revs down 47%, co guides to sequential decline in non-GAAP op mgn

Reports Q3 (Sep) earnings of $1.11 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $1.11; revenues fell 4.5% year/year to $18.33 bln vs the $18.26 bln S&P Capital IQ Consensus.

• Non-GAAP operating margin was 29.4% vs prior guidance of 30%.
• Q3 revenue was ahead of prior expectations driven by continued strength in notebook sales, which helped offset COVID-driven headwinds affecting significant portions of its business.

In the Data Center Group (DCG), Cloud revenue grew 15% yr/yr on continued demand to support vital services in a work and learn-at-home environment.

• At the same time, a weaker economy due to COVID-19 impacted DCG's Enterprise & Government market segment, which was down 47% following two quarters of more than 30%.
• The pandemic also weighed on Q3 data-centric results in the Internet of Things Group and the memory business (NSG).
• Mobileye revenue returned to growth in the third quarter as global vehicle production improved.

The PC-centric business (CCG) was up 1% yr/yr on continued notebook strength to support the work- and learn-at-home dynamics of COVID-19.

• In Q3, co launched the world's best processor for thin and light laptops, 11th Gen Intel Core processors with Intel Iris Xe graphics (formerly known as "Tiger Lake").
• More than 150 designs from major PC makers are in development, including 100 designs expected to be in market by the end of this year with more than 40 verified under the new Intel Evo platform brand.

Intel's third 10nm manufacturing facility, which is located in Arizona, is now fully operational and the company now expects to ship 30% higher 10nm product volumes in 2020 compared to January expectations.

Co issues in-line guidance for Q4, sees EPS of approx $1.10, excluding non-recurring items, vs. $1.08 S&P Capital IQ Consensus; sees Q4 revs of approx $17.40 bln vs. $17.39 bln S&P Capital IQ Consensus. Co guides to Q4 non-GAAP operating margin of 26.5%.