Goldman Sees Intel’s Profit Recovery Tested by PC Weakness

Goldman Sachs said Intel’s PC weakness is still limiting its profit recovery, pointing to a fourth-quarter adjusted earnings forecast of $0.25 a share, below the $0.43 consensus. Intel’s third-quarter results showed stronger profitability than revenue. Adjusted earnings per share were $0.52, ahead of the $0.39 consensus, and adjusted gross margin was 44.1%, compared with 41.9% expected. Revenue rose 20.9% year over year to $16.513 billion, slightly above the $16.419 billion consensus but below Goldman’s $17.027 billion estimate. Performance varied across Intel’s businesses. Client Computing revenue was $8.097 billion, about 8.9% below consensus and lower than a year earlier.

Source: TokenPost