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Intel stock plunges 10% after earnings show bigger sales drop than expected – MarketWatch

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https://www.marketwatch.com/story/intel-stock-plunges-10-after-earnings-show-bigger-sales-drop-than-expected-11603397818

Intel Corp. reported third-quarter profits Thursday afternoon.

A previous variation of this report listed an incorrect Wall Street revenue consensus price quote. It has been fixed.

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Intel
INTC,
+0.74%.
The chip maker reported third-quarter net earnings of $4.3 billion, or $1.02 a share, down more than 28% from $5.99 billion, or $1.35 a share, in the year-ago duration. Profits fell to $18.3 billion from $19.19 billion in the year-ago quarter. Analysts surveyed by FactSet had approximated adjusted earnings of $1.11 a share on profits of $18.24 billion, while Intel had anticipated adjusted earnings of $1.10 a share on revenue of approximately $18.2 billion.

The chip maker reported third-quarter net earnings of $4.3 billion, or $1.02 a share, down more than 28% from $5.99 billion, or $1.35 a share, in the year-ago duration. Experts surveyed by FactSet had actually approximated adjusted profits of $1.11 a share on earnings of $18.24 billion, while Intel had actually anticipated adjusted incomes of $1.10 a share on income of approximately $18.2 billion. Intels data-center group, which is being challenged by AMDs efforts in servers, saw revenue decrease 7% to $5.9 billion, while analysts expected $6.21 billion. Intels largest segment– client-computing, the traditional PC group– increased 1% to $9.8 billion amidst a rise in PC demand, with experts expecting $9.09 billion. Intel reported that nonvolatile memory solutions revenue fell 11% to $1.2 billion, while Wall Street anticipated $1.5 billion.

AMD,.
+0.27%. previously in the year. While falling back AMD in process, the chip maker has actually also seen Nvidia Corp
.
NVDA,. -1.21%.
move ahead of it in market capitalization, as the graphics-chip professional makes a play for ARM Holdings PLC that might make it more of a full rival to Intel. For more: How did Intel lose its Silicon Valley crown? Intels data-center group, which is being challenged by AMDs efforts in servers, saw revenue decline 7% to $5.9 billion, while analysts anticipated $6.21 billion. Intels largest sector– client-computing, the traditional PC group– rose 1% to $9.8 billion in the middle of a surge in PC need, with analysts anticipating $9.09 billion. Intel reported that nonvolatile memory services profits fell 11% to $1.2 billion, while Wall Street expected $1.5 billion. Earlier in the week, Intel stated that it was offering its flash-memory, or NAND, business to Korean chip maker SK Hynix Inc. for $9 billion. “Internet of Things,” or IoT, earnings fell 33% to $677 million, compared to an expected $788.8 million. Mobileye profits increased 2% to $234 million, while the Street had expected $158.5 million. For the 4th quarter, Intel projection revenue of $17.4 billion and changed revenues of $1.10 a share. Analysts usually anticipate fourth-quarter adjusted revenues of $1.07 a share and profits of $18.24 billion. For the year, Intel shares are down about 10%, while the Dow Jones Industrial Average.
DJIA,.
+0.54%.
— which counts Intel as a component– is down 1%, the S&P 500 index.
SPX,.
+0.52%.
is up 7%, and the tech-heavy Nasdaq Composite Index.
COMP,.
+0.18%.
is up 28%.

Intel Corp. data-center sales sank more than anticipated in the third quarter, sending out shares down 10% in after-hours trading Thursday.

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