Intel Corporation (NASDAQ:INTC) has beat Wall Street estimates with better than expected revenues. Intel’s data center business especially saw strong growth. Intel reported third quarter earnings of $3 billion (58 cents a share) on revenues of $13.5 billion. Wall Street was expecting third-quarter earnings of 53 cents a share on revenues of $13.46 billion. Intel launched new processors, but analysts were cautious due to the Q4 PC upgrade cycle. Intel was also cautious because the company projected Q4 revenues of $13.7 billion give or take $500 million.
“The third quarter came in as expected, with modest growth in a tough environment,” stated Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich. “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. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems.”
Intel’s data center group had Q3 revenues of $2.9 billion, which is up 12.2% from a year ago. Intel’s PC client group had Q3 sales of $8.4 billion, which was down 3.5% from a year ago. Intel ended the quarter with $19.1 billion in cash and investments. The company has around 107,200 employees as of the end of the quarter.
“The worldwide PC supply chain saw a small increase in inventory levels in the third quarter as customers continued to build inventory of Haswell based PCs but inventory levels are still being managed well below historical averages,” stated Intel CFO Stacey Smith.