Intel (INTC) Sees Q3 Profit, Sales Slip on Slowing PC Demand, Inventory Reductions
Revs fell 5.5 percent to $13.46 billion, from $14.23 billion in the same period last year. Net income slipped 14.3 percent to $2.97 billion, or 58 cents per share.
Overall, the Street was looking for revs of $13.23 billion and EPS of 50 cents.
On September 7th, Intel cut its sales outlook for the quarter from $13.8 billion to $14.8 billion down to $13.2 billion, +/- $300 million. At the time, consensus estimates called for revs of $13.6 billion. Intel said that supply chain inventories were being cut, emerging market growth was slowing, and PC demand was down.
Intel's PCClient Group daw an 8 percent drop in revs to $8.6 billion. Both the Data Center Group and other Intel architecture group reported increases.
Looking ahead, Intel sees fourth-quarter revs of $13.6 billion, +/- $500 million. The Street currently sees revs of $13.78 billion.
Shares are down about 2 percent.