Intel Shares Decline Despite Strong Quarter Due to Weak Performance From Its Data Centre Unit

Earnings analysis of Intel Corp for Q3 2020

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Intel shares fell as much as 10% in extended trading on Thursday after the chipmaker reported fiscal third-quarter earnings that were stronger than expected, but also exposed the underwhelming performance of its data centre business.

Here are the main financial highlights from Intel’s Q3 2020 earnings release:

 

Revenue: $18.33 billion versus expectations for $18.25 billion (4% decline year-over-year).

Earnings per share: $1.11, meeting analysts’ expectations.

Data Centre Group: Intel’s unit generated $5.91 billion in revenue (7% decline), which was significantly lower than the expected $6.21 billion.

Client Computing Group: The chipmaker’s largest business generated $9.85 billion in revenue (1% increase year-over-year). In the quarter, PC shipments have increased by 3.6% as more people switched to working and studying from home.

Other metrics: according to the company, revenue from enterprises and governments declined by 47% after two quarters of growth due to the effects of the coronavirus pandemic, while Q3 cloud revenue grew by 15%. 

 

Overall, Intel’s revenue in the quarter has dipped by 4% year-over-year. In contrast, the company ended its previous quarter with a growth of 20%.

In July, executives commented that the U.S. chipmaker may need to switch manufacturers and begin relying on other companies to manufacture its chips. One such example is the Taiwanese TSMC. “I would say we feel very confident in the ability of us being able to port to TSMC,” commented CEO Robert Swan last week for CNBC.

 

Fiscal guidance for Q4 2020

With respect to guidance, Intel said it expects $1.10 in earnings per share on $17.4 billion in revenue in the fourth quarter. This revenue forecast implies a decline of about 14%. The company’s shares are down by about 20% since the beginning of 2020, with competing chipmaker AMD’s shares rising by 2% in extended trading shortly after Intel’s report.


Upcoming reports

See the full list of upcoming earnings reports for 26 – 30 October in the tables below.

Monday, October 26th 2020

Country of originCompany nameFiscal period
USABeyond Meat IncQ3 2020
Kingdom of the NetherlandsNXP Semiconductors NVQ3 2020
USANational Oilwell Varco IncQ3 2020

Tuesday, October 27th 2020

Country of originCompany nameFiscal period
USAAflac IncQ3 2020
USACH Robinson Worldwide IncQ3 2020
USAFireEye IncQ3 2020
USAAkamai Technologies IncQ3 2020
USAFiserv IncQ3 2020
USAAdvanced Micro Devices IncQ3 2020
USAEdison InternationalQ3 2020
USAMicrosoft CorpQ1 2021
SwitzerlandChubb LtdQ3 2020
USAO-I Glass IncQ3 2020
USAMerck & Co IncQ3 2020
USACummins IncQ3 2020
USAS&P Global IncQ3 2020
USAPfizer IncQ3 2020
USAFranklin Resources IncQ4 2020
USAEli Lilly and CoQ3 2020
USAXerox Holdings CorpQ3 2020
USAHarley-Davidson IncQ3 2020
USACorning IncQ3 2020
USA3M CoQ3 2020
ItalyDavide Campari Milano NVQ3 2020
USACaterpillar IncQ3 2020

Wednesday, October 28th 2020

Country of originCompany nameFiscal period
USAFord Motor CoQ3 2020
USAExelixis IncQ3 2020
USAeBay Inc
Q3 2020
USAPinterest Inc
Q3 2020
USAGilead Sciences Inc
Q3 2020
USAVisa Inc
Q4 2020
USASturm Ruger & Company Inc
Q3 2020
USAEquinix Inc
Q3 2020
USACerner Corp
Q3 2020
USAO'Reilly Automotive Inc
Q3 2020
USAService Corporation International
Q3 2020
USAKLA Corp
Q1 2021
USAETSY Inc
Q3 2020
USAGrubHub
Q3 2020
USAWestern Digital Corp
Q1 2021
USAAmgen Inc
Q3 2020
USACognizant Technology Solutions Corp
Q3 2020
BrazilPetroleo Brasileiro SA Petrobras
Q3 2020
BrazilBanco Bradesco SA
Q3 2020
USABunge Ltd
Q3 2020
SwitzerlandGarmin Ltd
Q3 2020
CanadaCelestica Inc
Q3 2020
USACME Group Inc
Q3 2020
USAAutomatic Data Processing Inc
Q1 2021
USAEntergy Corp
Q3 2020
USAMastercard Inc
Q3 2020
USABlackstone Group Inc
Q3 2020
USAGeneral Dynamics Corp
Q3 2020
USANorfolk Southern Corp
Q3 2020
USABoston Scientific Corp
Q3 2020
USABoeing Co
Q3 2020
USARoyal Caribbean Cruises Ltd
Q3 2020
USAGeneral Electric Co
Q3 2020
USAMasco Corp
Q3 2020
Kingdom of the NetherlandsYandex NV
Q3 2020
USAACADIA Pharmaceuticals Inc
Q3 2020
USAVertex Pharmaceuticals Inc
Q3 2020
USAAnthem Inc
Q3 2020
USAJuniper Networks Inc
Q3 2020

Thursday, October 29th 2020

Country of originCompany nameFiscal period
USAHartford Financial Services Group Inc
Q3 2020
USAEastman Chemical Co
Q3 2020
USAMotorola Solutions Inc
Q3 2020
USATwitter Inc
Q3 2020
USAStarbucks Corp
Q4 2020
USAAlphabet Inc
Q3 2020
USAAmazon.com Inc
Q3 2020
USAUnited States Steel Corp
Q3 2020
USAIllumina Inc
Q3 2020
USAActivision Blizzard Inc
Q3 2020
USAFloor & Decor Holdings Inc
Q3 2020
USADevon Energy Corp
Q3 2020
USAApple Inc
Q4 2020
USAFacebook Inc
Q3 2020
USABaxter International Inc
Q3 2020
USADupont De Nemours Inc
Q3 2020
USABrinks Co
Q3 2020
CanadaShopify Inc
Q3 2020
USAGannett Co Inc
Q3 2020
USAABIOMED Inc
Q2 2021
USAMoody's Corp
Q3 2020
USASouthern Co
Q3 2020
USAComcast Corp
Q3 2020
USANewmont Corporation
Q3 2020
USAInternational Paper Co
Q3 2020
USAIntercontinental Exchange Inc
Q3 2020
USAExelon Corp
Q3 2020
USAMarsh & McLennan Companies Inc
Q3 2020
IrelandAptiv PLC
Q3 2020
LuxembourgSpotify Technology SA
Q3 2020
USAStericycle Inc
Q3 2020
USABio Rad Laboratories Inc
Q3 2020

Friday, October 30th 2020

Country of originCompany nameFiscal period
USAAltria Group Inc
Q3 2020
USAHoneywell International Inc
Q3 2020
USAColgate-Palmolive Co
Q3 2020
ChinaAlibaba Group Holding Ltd
Q2 2021
USABroadridge Financial Solutions Inc
Q1 2021
USAExxon Mobil Corp
Q3 2020
USAChevron Corp
Q3 2020
USAWeyerhaeuser Co
Q3 2020
USAUnder Armour Inc
Q3 2020

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