From DailyTech: Analysts polled by Bloomberg and Thomson Reuters predicted Silicon Valley giant Intel Corp. (INTC) would take a beating fiscally in Q3 2013 as a sagging PC market was expected to badly dent its traditionally strong bottom line. The Reuters crowd estimated earnings of 53 cents per share, which works out to about $2.69B USD in total profit, while the Bloomberg survey saw a prediction of 54 cents per share ($2.75B USD, total) in profit.
Instead Intel surprised, delivering earnings of 58 cents per share -- $2.95B USD total -- which allowed profit to stay relatively flat on a year-to-year basis, down just slightly (3 percent) from $2.97B USD in Q3 2012. Operating income and net income -- $3.5B USD and $3.0B USD -- were also higher than expected, despite Intel spending $4.7B USD on research and development.
Intel's revenue tied analysts expectations, drawing in $13.5B USD. And it was able to reward shareholders with $1.1B USD in dividends and a share repurchasing effort that exchanged $536M USD for 24 million shares (a price of $22.33 USD per share).
Intel's data center group posted double digit growth (12.2 percent) as Intel's server chips continue to be top dogs in this market, which has experienced explosive growth with rising cloud storage and software use.
CEO Brian Krzanich, who took the reins from veteran Intel CEO Paul Otellini late this spring, expressed optimism about these results, remarking, "The third quarter came in as expected, with modest growth in a tough environment. We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems."
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