Chipmaker Intel late Thursday beat Wall Street's targets for the third quarter and guided higher than estimates for the current period. Intel stock rose in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 41 cents a share on sales of $14.16 billion in the September quarter. Analysts polled by FactSet had expected Intel earnings of 22 cents a share on sales of $13.57 billion. However, on a year-over-year basis, Intel earnings slid 31% while sales dropped 8%.
Intel's earnings have declined for eight straight quarters on a year-over-year basis. Its sales have fallen for seven quarters in a row.
For the current quarter, Intel forecast adjusted earnings of 44 cents a share on sales of $15.1 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 33 cents a share on sales of $14.36 billion in the fourth quarter. In the year-earlier period, Intel earned 10 cents a share on sales of $14.04 billion.
Intel Stock Climbs Following Report
In after-hours trading on the stock market today, Intel stock rose 6% to 34.46. During the regular session Thursday, Intel stock dipped 0.9% to close at 32.52.
"We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps, agreements with new foundry customers, and momentum as we bring AI everywhere," Chief Executive Pat Gelsinger said in a news release.
An improving market for personal computers boosted Intel's results.
The company's Client Computing Group saw sales decline 3% year over year to $7.9 billion in the third quarter. That compares with declines of 38% and 12% in the first and second quarters, respectively.
Intel's Data Center and AI unit saw sales fall 10% year over year to $3.8 billion. And its Network and Edge unit saw sales tumble 32% to $1.5 billion.
Intel's earnings report was its first since the company terminated its agreement to buy Tower Semiconductor on Aug. 16. Intel had failed to receive regulatory approvals for the deal, which it announced in February 2022.
Impinj Jumps On Earnings News
Other semiconductor stocks moving on earnings news Thursday included Impinj, MaxLinear and STMicroelectronics.
Impinj stock rocketed 23.9% to 61.54 on Thursday after the tracking-chip maker posted better-than-expected third-quarter results with upbeat guidance.
MaxLinear stock tumbled 22% to 14.36 after the communications chipmaker missed expectations for sales and earnings in the third quarter. Its outlook also was below estimates as it continues to deal with high inventories.
STMicro stock rose 3.2% to 40.25 after the automotive and industrial chipmaker beat estimates for the third quarter. However, its sales guidance for the fourth quarter was below views.
Intel stock ranks No. 11 out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. STMicro ranks eighth in that group.
Meanwhile, Impinj ranks No. 12 out of 37 stocks in IBD's fabless semiconductor industry group. MaxLinear is No. 17 in the fabless chip group.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
