Intel announces forecasts amid strong chip sales

Last month, Intel said that the surprising growth of the personal computer market was weighing on its factory network. But this strong demand has also turned out to be positive. Intel has focused its manufacturing capacity on high-end servers and PCs, which has increased revenues and profits.

Intel reported $ 19.16 billion in revenue in the third quarter, up $ 16.2 billion a year earlier, and more than $ 18.1 billion expected by analysts, according to FactSet.

Net profit reached $ 6.4 billion. On an adjusted basis, Intel's profit is $ 1.22 per share, much more than the $ 1.10 expected by analysts, according to FactSet. Profits were helped by a tax rate of about 10% in the third quarter, down from 24% last year.

Intel does not expect that the solid demand for its chips will decline in the near future. The fourth-quarter forecast for revenue of about $ 19 billion has exceeded Wall Street forecasts. The company is now forecasting sales of $ 71.2 billion for 2018, up from the previous forecast of $ 69.5 billion.

Shares rose less than 1% after trading hours Thursday, after closing the regular session up 4.5% to $ 44.31.

Intel has been without a full-time CEO since Krzanich resigned for violating company policy by maintaining a relationship with a colleague. Chief Financial Officer Bob Swan, who currently held the position of CEO, repeated during an interview Thursday that he was not interested in full time work.

"Nothing has changed," he said. He said the council was looking for a successor "with a sense of urgency", but that he had not yet set a timetable for making his choice.

In the absence of a full-time leader, Intel had to deal with a shortage of processors to meet PC demand. Global PC shipments increased 1.4% in the second quarter – the first increase in six years – and increased 0.1% in the third quarter as companies purchased Windows 10 computers, replacing older models , according to the research firm.

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Mr. Swan said that Intel "was struggling to keep up with the demand," but had refused to estimate the amount of his income. He added that the company is strengthening its capabilities to cope with the wave. Intel has increased its capital expenditure plans from $ 1.5 billion to $ 15.5 billion this year to meet this need.

Sales of the company segment serving the personal computer market increased 16% over the previous year to $ 10.23 billion. Sales of its data center segment, Intel's second largest unit and a strong profitability factor, increased 16%.

The surging demand comes as Intel faces challenges to increase the production of its very compact processors. Three months ago, Intel's shares tumbled in the face of investor anxiety over persistent delays in deploying so-called 10-nanometer chips to achieve volume output.

Intel surprised investors by saying it expects volume production to allow it to install systems with new chips in stores as early as the holiday season of 2019. On Thursday, Swan said the schedule was respected.

Write to Jay Greene at [email protected] and Micah Maidenberg at [email protected]