Tech giant’s earnings are strong despite swoon in PC and laptop markets.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Intel’s earnings surpassed Wall Street expectations despite a swoon in the PC and laptop markets.
The tech giant says it had $14.5 billion in revenue in the third quarter with 64 cents per share earnings. Wall Street analysts believed it would only net 59 cents a share.
In a news release, CEO Brian Krzanich said, “We executed well in the third quarter and delivered solid results in a challenging economic environment.”
During the quarter, the company’s PC sales continued to slow down. The Client Computing Group reported revenue of $8.5 billion, down 7 percent from a year ago. This group includes desktop, laptop and mobile products.
Volumes for desktop, notebook and tablet were all down, 15 percent, 14 percent and 39 percent, respectively. However, sale prices for those items all rose.
(SOURCE: Portland Business Journal)
But the company is moving away from computing in favor of data centers.
“If we get to where PC units are flat,” chief financial officer Stacy Smith told Wall Street analysts Tuesday, “we’re growing at a really fast pace.”
The question for Intel, and its investors, is just how long that will take. Sales in Intel’s newly combined PC and mobile chips were down 7 percent in the third quarter.
(SOURCE: OregonLive.com)
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