Intel releases third quarter 2023 financial report
Today, Intel unveiled its financial results for the third quarter of 2023, with revenues, profits, and future prospects all-surpassing market anticipations. Although Intel has experienced seven consecutive quarters of year-on-year revenue decline, the forthcoming outlook remains rather sanguine. Analytical agencies posit that a resurgence in PC sales, coupled with Intel’s data center ventures, will be under the spotlight, paving the way for a potential rebound in growth for the fourth quarter of this year.
For the third quarter of 2023, Intel reported a total revenue of $14.158 billion, an 8% decline from last year’s $15.338 billion but surpassing the market’s expected $13.54 billion. Net profits stood at $310 million, marking a significant 71% plunge from the previous year’s $10.19 billion. Gross margins were at 42.5%, experiencing a minuscule decline of 0.1 percentage points from last year’s 42.6%. The diluted earnings per share were $0.07, down 72% compared to the $0.25 from the same period the previous year.
Segmenting by department for Q3 2023, the Client Computing Group (CCG) recorded revenues of $7.867 billion, a 3% decline from last year’s $8.128 billion. The Data Center and Artificial Intelligence (DCAI) posted revenues of $3.814 billion, down 10% from the prior year’s $4.255 billion. The Network and Edge Business (NEX) accrued $1.45 billion in revenue, witnessing a 32% decrease from last year’s $2.133 billion. Meanwhile, Mobileye experienced a revenue surge, totaling $530 million, which is an 18% increase from the previous year’s $450 million. Lastly, Intel Foundry Services (IFS) saw a staggering growth, with revenues of $311 million, marking a 299% leap from the prior year’s $78 million.
Intel projects its fourth quarter 2023 revenues to range between $14.6 billion and $15.6 billion, aligning with the market’s average estimate of $14.31 billion. The gross margin is anticipated to experience a modest ascent, reaching approximately 43.3%, with diluted earnings per share at $0.23. Following the release of this latest financial announcement, Intel’s stock price surged by $2.86 to $35.38 during post-market trading on October 26th, 2023, Eastern Time, reflecting an 8.79% increase.
