Intel Revenue Misses in Q3 as Chip Shortage Bites; Shares Slump

© Reuters.

By Yasin Ebrahim – Intel (NASDAQ:) raised its full-year guidance, but third-quarter revenue fell short of expectations as the chip shortage dented performance.

Shares of Intel tumbled 6% in after-hours trading.

The company lifted 2021 EPS and gross margin guidance, forecasting EPS of $5.28 and gross margin of 55%. That was up from a previous estimate for adjusted EPS of $4.80.

Intel announced earnings per share of $1.71 on revenue of $18.09 billion. Analysts polled by anticipated EPS of $1.11 on revenue of $18.24 billion.

Client Computing Group, which mainly consists of the company’s PC processor and related component business, reported a 2% decline in revenue on lower notebook volumes due to “industry-wide component shortages, and on lower adjacent revenue, partially offset by higher average selling prices and strength in desktop,” the company said.

Data center business revenue gained 10% to $6.5 billion.

For the fourth quarter, Intel expects revenue of $18.2 billion with adjusted earnings of $1.10. Analysts predicted a guidance of $18.27 billion in revenue and $1.08 profit.

The company also reported chief financial officer George Davis announced plans to retire in May 2022.

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