Intel Q3 2020 Earnings Report
Key Takeaways
Intel reported Q3 2020 revenue of $18.3 billion, a 4% decrease year-over-year, but above expectations. GAAP EPS was $1.02, down 25% YoY, while non-GAAP EPS was $1.11, down 22% YoY, also exceeding expectations. The company is raising full-year expectations, projecting 5% top-line growth with revenue of $75.3 billion, GAAP EPS of $4.55, and non-GAAP EPS of $4.90.
Third-quarter revenue was $18.3 billion, exceeding July expectations but down 4% year-over-year.
GAAP EPS was $1.02, a 25% decrease year-over-year, while non-GAAP EPS was $1.11, a 22% decrease year-over-year, both above July expectations.
Generated $8.2 billion in cash from operations and paid dividends of $1.4 billion during the third quarter.
Announced an agreement to sell the Intel NAND memory and storage business to SK hynix for $9.0 billion.
Intel
Intel
Intel Revenue by Segment
Forward Guidance
Intel's guidance for Q4 2020 includes revenue of approximately $17.4 billion, an operating margin of 24.5%, a tax rate of 14.5%, and earnings per share of $1.02. For the full year 2020, revenue is projected to be approximately $75.3 billion, with an operating margin of 29.5%, a tax rate of 14.5%, and earnings per share of $4.55.
Positive Outlook
- Revenue is expected to be $17.4 billion.
- Operating margin is anticipated to be 24.5%.
- Tax rate is projected at 14.5%.
- Earnings per share are estimated to be $1.02.
- Full-year revenue is expected to be $75.3 billion.
Challenges Ahead
- Actual results may differ materially due to various risks and uncertainties.
- The COVID-19 pandemic could adversely affect Intel's financial condition and results of operations.
- Demand for Intel's products is highly variable and can differ from expectations.
- Intel's results can vary significantly based on capacity utilization and inventory valuation.
- Intel's results can be affected by adverse economic, social, political, and infrastructure conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income