Intel Corporation reported third-quarter 2020 financial results. According to the Q3 results, data-center sales sank more than expected, sending shares down 10% in after-hours trading Thursday.
The effects of the weaker economy due to COVID-19
Intel reported third-quarter net income of $4.3 billion, or $1.02 a share, down more than 28% from $5.99 billion, or $1.35 a share, in the year-ago period. In the Data Center Group (DCG), Cloud revenue grew 15 percent year over year on continued demand to support vital services in work and learn-at-home environment. In the Q3 report, the company explained the negative effects of COVID-19 as:
“A weaker economy due to COVID-19 impacted DCG’s Enterprise & Government market segment, which was down 47 percent a year of the year following two-quarters of more than 30 percent growth.”
The company generated $8.2 billion in cash from operations and paid dividends of $1.4 billion. For the fourth quarter, Intel now expects adjusted earnings of $4.90 a share on sales of $75.3 billion.
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