Intel Reports Earnings of $3.0 Billion
Intel today announced earnings of $0.58 per share -- up from $0.39 in the second quarter and $0.58 in the third quarter of 2012. Its revenue stood flat when compared to the same period last year at $13.5 billion, but it was up 5% versus the second quarter of this year.
The company highlighted that it paid $1.1 billion in dividends and repurchased 24 million shares of stock for $536 million -- which are approximately the same amounts for the second quarter of 2013 and the third quarter of 2012. It still has $3.7 billion remaining in its authorized amount for share repurchases.
Of the results, CEO Brian Krzanich said, "The third quarter came in as expected, with modest growth in a tough environment. We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors."
Revenue for Intel's largest business segment, its PC Client Group, fell from $8.7 billion in the second quarter of last year to $8.4 billion in the second quarter of this year, or 3.5%. However, revenue for its second largest unit, its Data Center Group, grew by 12%, from $2.6 billion to $2.9 billion. Those were the only two operating segments that had a profit, as all of its other architecture, software, services, and other operating segments had revenues of $2.2 billion but losses of $1.1 billion.
For the fourth quarter, Intel anticipates revenue to grow by 2% to $13.7 billion, which is at the low end of its historical range. In addition, it expects gross margins to fall to 61%, a decrease of 1 percentage point.
Beyond the earnings
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