Shares of technology giant Intel (NASDAQ:INTC) gained 6% in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.41, which beat the consensus estimate of $0.22 per share.
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Sales decreased by 8% year-over-year, with revenue hitting $14.2 billion. This beat analysts’ expectations by $600 million.
Intel’s earnings per share for this quarter were boosted by reducing expenses, according to a statement from CFO David Zinsner. Indeed, the company reported that it now employs 120,300 people, a decrease from 131,500 the previous year.
Datacenter and AI sales, which includes server chips, declined by 10% to $3.8B, with Intel’s subsidiary Mobileye (NASAQ:MBLY) accounting for $530M. The Network and Edge division earned $1.5 billion, while sales in the company’s new Foundry Services segment increased over 300% year-over-year to $311 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2023 to be in the range of $14.6 billion to $15.6 billion and $0.44, respectively. For reference, analysts were expecting $14.31 billion in revenue along with an adjusted EPS of $0.32.
Is Intel a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 19 Holds, and five Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average INTC price target of $36.81 per share implies 13.4% upside potential.
