Intel shares fell in extended trading on Tuesday after the company gave slightly disappointing revenue guidance, despite reporting earnings that beat analyst estimates.
Intel said it expects $15.7 billion in revenue for its fourth quarter. Analysts had forecast revenue of about $15.87 billion, according to a FactSet consensus estimate.
The stock dropped more than 3 percent in after hours trading.
The company reported adjusted third-quarter earnings of 80 cents per share on $15.78 billion in revenue. Analysts expected the chipmaker to report profits of 73 cents per share on revenues of $15.58 billion, according to a Thomson Reuters consensus estimate.
CEO Brian Krzanich said that Intel’s third-quarter results were driven by the company’s transformation to new business like cloud services.
“We’re executing well, and these results show Intel’s continuing transformation to a company that powers the cloud and billions of smart, connected devices,” he said in his statement.
In a conference call, Krzanich said the PC market is a “bit stronger.” He said the company saw its strongest growth in business PCs, or the non-consumer segment of the market. He added the consumer segment is “better but not back to where we would like to see.”
Intel saw record revenue in its data center business and Internet of Things segments, bringing in $4.5 billion and $689 million in revenue, respectively. The data center segment saw its revenue grow 10 percent year over year, while revenue from the Internet of Things group surged 19 percent from the comparable year-ago period.
