Intel Earnings Fall But Beat Expectations

(RTTNews) - Computer chip maker Intel (INTC) announced earnings for the third quarter that slipped about 6 percent from last year. Still, the bottom line came in above the amount predicted by market analysts, as Wall Street had predicted a more pronounced decline.

Intel benefited from gains in its Data Center and Internet units, but saw year-over-year weakness in its Client Computing division - its largest unit by revenue.

The company revealed net income for the quarter of $3.1 billion, or $0.64 per share. This was down from $3.3 billion, or $0.66 per share, in the same period last year. However, analysts had predicted earnings of $0.59 per share, according to Thomson Reuters.

Revenue for the quarter retreated to $14.5 billion from $14.6 billion last year. Analysts had expected the top-line figure to decline to $14.2 billion.

Intel's gross margin took a hit as well. The figure retreated to 63.0% from 65.0% in the third quarter of 2014.

Revenue for the firm's Client Computing group retreated sharply for the quarter. The figure fell to $8.5 billion, compared to nearly $9.2 billion reported in the same period last year.

This more than offset gains in the firm's Data Center Group and in its Internet of Things Group. Both of those units showed a revenue advance compared to last quarter.

Commenting on the earnings results, the company's CEO, Brian Krzanich, noted that the chip maker is facing a "challenging economic environment" but contended that the firm posted "solid results" during the quarter.

Looking ahead, the company predicted revenue of $14.3 billion to $15.3 billion for the fourth quarter. Gross margin is expected to tick down slightly from the third quarter, coming in at 62%, plus or mins a couple of percentage points.

Analysts are predicting $14.8 billion for the fourth quarter, right at the mid-point of Intel's prediction.