Intel Shares Jump On Cost Cutting Measures, Mobileye IPO Despite Revenue Miss, Weak Guidance

Semiconductor company Intel Corporation INTC reported third-quarter (Q3) financial results after the market close Thursday. Here are the key highlights.

What Happened: The Santa Clara, California-based company's Q3 revenue was $15.3 billion. That's down 20% year-over-year.

The revenue total missed a Street estimate of $15.43 billion according to data from Benzinga Pro.

See Also: Intel Raises $681M From Its Self-Driving Technology Mobileye IPO

Non-GAAP revenue was down 15% year-over-year when factoring in restructuring charges of $664 million.

The company's earnings per share of 59 cents in the third quarter, beating a Street estimate of 34 cents per share.

Revenue by segment was:

• Client Computing Group: $8.1 billion, -17% year-over-year
• Datacenter and AI Group: $4.2 billion, -27% year-over-year
• Network and Edge Group: $2.3 billion, +14% year-over-year
• Accelerated Computing Systems and Graphics Group: $185 million, +8% year-over-year
• Mobileye: $450 million, +38% year-over-year
• Intel Foundry Services: $171 million, -2% year-over-year

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” Intel CEO Pat Gelsinger said.

Related Link: Intel Raises $861M From Its Self-Driving Technology Mobileye's IPO

What’s Next: Intel is guiding for fourth-quarter revenue to be in a range of $14 billion to $15 billion. For the full fiscal year, Intel sees revenue coming in a range of $63 billion to $64 billion. Analysts have a full-year estimate of $65.26 billion according to data from Benzinga Pro.

Intel is focused on cost reductions going forward with a plan for $3 billion in savings in 2023 and cost savings of $8 billion to $10 billion annually by 2025.

“To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future,” Gelsinger said.

The company highlighted the IPO of Mobileye Global MBLY that happened this week. Intel said it believes the IPO “will unlock value for Intel’s shareholders.”

INTC Price Action: Intel shares are up 6% to $27.90 in after-hours trading Thursday.

Read more on what analysts are saying about Intel here.