Intel Beats, But Weak Guidance Remains

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.

>Contact by Email.

More from Technology

Deconstructed: Why Micron's Stock Has Exploded 11% in 13 Hours

Deconstructed: Why Micron's Stock Has Exploded 11% in 13 Hours

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Experts Break Down GDPR Risks for Investors

Experts Break Down GDPR Risks for Investors

4 Billionaires Trying to Make Space Travel a Reality

4 Billionaires Trying to Make Space Travel a Reality

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament