Intel Results Come In Above Expectations
Agustino Fontevecchia, 10.12.10, 05:46 PM EDTIntel tops anlysts' forecasts on the top and bottom lines. Shares rise after hours.
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Intel posted earnings after the bell on Tuesday, posting revenue and operating income of $11.1 billion and $4.1 billion respectively. The chipmaker beat analysts' profit expectations by two cents, reporting earnings per share of $0.52.
Paul Otelli, president and CEO of Intel ( INTC - news -people ), explained that Q3 results were "driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets." The $11.1 billion in revenue represent an 18% jump from 2009's Q3 results topping analysts' forecasts, while the $0.52 EPS represents an increase of 58% over 2009's Q3 EPS of $0.33.
Net profit stood at $3 billion, up 59.2% from $1.9 billion. Interestingly, the Asia-Pacific region generated 58% of Intel's revenue, or $6.4 billion, compared to the 20% or 2.2 billion generated by the Americas region.
"Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next generation processor, codenamed Sandy Bridge," explained Otelli, who also praised the new Atom processor, Intel's move into netbooks, tablets, and even the new Google ( GOOG - news -people ) TV.
The chipmaker released its Q4 forecast, forecasting revenues of about $11.4 billion and spending on research and development and M&A for approximately $3.2 billion.
As the largest chipmaker, Intel is sometimes taken to be representative of the computer and technology industries. With the increasing relevance of mobile and tablet devices, Intel is seen as lagging behind competitors such as Qualcomm (QCOM - news - people ) and ARM Holdings ( ARMH - news -people ) how have come to be protagonists in this new market for chips.
Intel's closing price on Tuesday was $19.77, and it gained %0.20 or 1.01% to 19.97 in after hours trading.
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