Intel handily beats analysts' expectations as chips continue to shine

Intel handily beats analysts' expectations as chips continue to shineā€¯

Intel raised its full-year outlook and reported quarterly earnings that easily topped analysts' expectations on Thursday. And INTC stock, which has risen nearly 20% in three months and trading near 52-week highs, has reminded investors of what the chip giant can still execute.

Earnings per share (non-adjusted) were $1.01. Its revenue was up 2% from the third-quarter a year ago, while its adjusted earnings per share were up 26%. Will the momentum continue Thursday?

The company posted net income of $4.52 billion, which marks a 34% year-over-year growth. Since the start of the just-ended quarter, the EPS estimates has risen from 74 cents.

"We executed well in the third quarter with strong results across the business, and we're on track to a record year", said Brian Krzanich, Intel CEO, in a statement.

Data center revenue was a positive for Intel as well, tallying up to $4.88 billion, compared to the StreetAccount prediction of $4.79 billion. Analysts had expected revenue of $8.68 billion, according to FactSet.

While that's ahead of projections, it would still leave revenue little changed from the same period a year earlier, underscoring how hard it is for the world's biggest chipmaker to expand total sales while its largest business stagnates.

Intel recently launched its Coffee Lake line of processors, which analysts believe will pose challenges for rival Advanced Micro Devices Inc's Ryzen processors.

And these bets have paid off.

Projected revenues for 2017: $62 billion. Data-center revenue climbed 7 percent, to $4.9 billion, and Intel's internet of things (IoT) revenue rose 23 percent, to $849 million.

Intel reported overall revenue of $16.1 billion, up 2 percent compared to the $15.8 billion the company reported for its fiscal third quarter of 2016. Elsewhere, investors will want to see improvements in other high-growth areas such as Internet of Things Group, which in the second quarter delivered 26% jump in revenue.

That growth includes the revenue from security company McAfee, which Intel spun out early this year. Any commentary on ways the company plans to leverage those deals to better compete with Nvidia and AMD can boost the stock higher.

The numbers are a sign that Intel's strategic shifts into areas beyond its core personal computing business are beginning to get traction. And Intel will need to work harder to keep the stock climbing.

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