NEW YORK ( TheStreet) - Intel (INTC) comfortably beat Wall Street's earnings estimate in its third-quarter results, released after market close on Tuesday. Weaker-than-expected guidance, however, weighed on the company's shares in after-hours trading, sending the lower by 0.38% to $23.30.
The chip maker earned 58 cents a share, flat compared to the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 53 cents a share.
Intel brought in revenue of $13.5 billion, also flat year over year, but up 5% sequentially. Wall Street expected sales of $13.46 billion.
The Santa Clara, Calif.-based firm, widely regarded as a tech bellwether, reported a gross margin of 62.4%. The gross margin number was 1.4 percentage points above the midpoint of the company's prior expectation of 61%.As anticipated, Intel felt the pressure of a difficult PC environment. Revenue from the company's PC Client Group was $8.4 billion, down 3.5% compared to the prior year's quarter, but up 3.5% sequentially. Revenue from Intel's Data Center Group, however, was up 12.2% year over year and up 6.2% compared to the second quarter of 2013. For the fourth-quarter, Intel expects revenue between $13.2 billion and $14.2 billion and gross margin between 59% and 63%. Analysts surveyed by Thomson Reuters predict fourth-quarter revenue of $14 billion. "The third quarter came in as expected, with modest growth in a tough environment," said Intel CEO Brian Krzanich, in the company's statement. --Written by James Rogers in New York. Follow @jamesjrogers >Contact by Email.
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