Intel matched Street forecasts for sales and earnings after the close of trading Thursday, posting non-GAAP profits of $1.11 per share on revenues of $18.3 billion. However, data center and personal computer sales indicated that cheaper semiconductors put pressure on the group's gross margins, which were around 200 basis points below the company's prior guidance at 55%.
Intel boosted its full-year non-GAAP earnings guidance to $4.90 per share, a 5 cents per share improvement from its summer forecast, and sees fourth-quarter revenues of around $17.4 billion.
"2020 has been the most challenging year in my career with a global pandemic geopolitical tensions challenging business principles of globalization and social unrest," CEO Bob Swan told investors on a conference call late Thursday. "Despite all this, we expect to deliver the best year in our storied 52-year history."
"We plan to grow revenue by $1.8 billion more than our January expectations even as COVID has significantly impacted our business mix," he added. "Full-year gross margin will be down approximately two points versus our January expectation primarily driven by the acceleration of 10-nanometer-based products and a change in mix of products in a work-from-home, study-from-home environment."
So, does Jim Cramer think it's time for an executive shakeup?
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