Intel's third-quarter revenue was $19.192 billion, and net profit increased 60% year-on-year

Intel reportedly released its third-quarter financial report for fiscal year 2021 today. The report shows that Intel's third-quarter revenue was US$19.192 billion, a 5% increase from US$18.333 billion in the same period last year; net profit was US$6.823 billion, a 60% increase from US$4.276 billion in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted net profit in the third quarter was US$6.997 billion, a 54% increase from US$4.546 billion in the same period last year.

Intel's third-quarter adjusted earnings per share exceeded Wall Street analysts' previous expectations, but adjusted revenue fell short of analysts' expectations, and the outlook for adjusted earnings per share in the fourth quarter was also lower than analysts' expectations. In addition, Intel's client computing group's third-quarter net revenue (which includes chip business revenue) fell year-on-year, and the data center group's revenue fell short of expectations, causing its after-hours stock price to plummet by nearly 9%.

Main achievement:

In the quarter ending September 25, Intel's net profit was $6.823 billion, up 60% from $4.276 billion in the same period last year; earnings per share were $1.67, up 64% from $1.02 in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted net profit in the third quarter was $6.997 billion, up 54% from $4.546 billion in the same period last year; adjusted earnings per share were $1.71, up 59% from $1.08 in the same period last year.

Intel's third-quarter revenue was $19.192 billion, up 5% from $18.333 billion in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's third-quarter adjusted revenue was $18.087 billion, up 5% from $17.266 billion in the same period last year.

Intel's third-quarter adjusted earnings per share exceeded analysts' expectations, but adjusted revenue fell short of analysts' expectations. According to data provided by Yahoo Finance, 33 analysts had previously expected Intel's third-quarter adjusted earnings per share to reach $1.11, and 30 analysts had previously expected Intel's third-quarter adjusted revenue to reach $18.24 billion.

Intel's third-quarter operating profit was $5.227 billion, compared with $5.059 billion in the same period last year; operating margin was 27.2%, down 0.4 percentage points from 27.6% in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's third-quarter adjusted operating profit was $5.202 billion, compared with $5.251 billion in the same period last year; adjusted operating margin was 28.8%, down 1.7 percentage points from 30.4% in the same period last year.

Intel's third-quarter gross profit was $10.746 billion, compared with $9.741 billion in the same period last year; gross profit margin was 56.0%, up 2.9 percentage points from 53.1% in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel's third-quarter adjusted gross profit was $10.452 billion, compared with $9.748 billion in the same period last year; adjusted gross profit margin was 57.8%, up 1.3 percentage points from 56.5% in the same period last year.

Intel's operating expenses in the third quarter were $5.519 billion, up 16% from $4.682 billion in the same period last year. Among them, R&D expenses were $3.803 billion, compared with $3.272 billion in the same period last year; marketing, general and administrative expenses were $1.674 billion, compared with $1.435 billion in the same period last year; restructuring and other expenses were $42 million, compared with -$25 million in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted operating expenses in the third quarter were $5.250 billion, up 17% from $4.497 billion in the same period last year.

Intel's third-quarter tax rate was 0.5%, down 14.7 percentage points from 15.2% in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel's third-quarter adjusted tax rate was 0.4%, down 15 percentage points from 15.4% in the same period last year.

Performance of each department:

According to the division, Intel's Client Computing Group's net revenue in the third quarter (including chip business revenue) was $9.664 billion, compared with $9.847 billion in the same period last year, a year-on-year decrease of 2%; operating profit was $3.317 billion, compared with $3.554 billion in the same period last year. Among them, platform business revenue was $8.954 billion, compared with $8.762 billion in the same period last year; other business revenue was $710 million, compared with $1.085 billion in the same period last year.

Intel's data center group's revenue in the third quarter was $6.496 billion, compared with $5.905 billion in the same period last year, while analysts had expected $6.66 billion; operating profit was $2.057 billion, compared with $1.903 billion in the same period last year. Among them, platform business revenue was $5.747 billion, compared with $5.151 billion in the same period last year; other business revenue was $749 million, compared with $754 million in the same period last year.

Intel's Internet of Things Group's revenue in the third quarter was $1.368 billion, compared with $911 million in the same period last year; operating profit was $381 million, compared with $108 million in the same period last year. Among them, IOTG business revenue was $1.042 billion, compared with $677 million in the same period last year; Mobileye business revenue was $326 million, compared with $234 million in the same period last year.

Intel's non-volatile storage solutions group revenue in the third quarter was $1.105 billion, compared with $1.153 billion in the same period last year; operating profit was $442 million, compared with $29 million in the same period last year.

Intel's Programmable Solutions Group revenue in the third quarter was $478 million, compared with $411 million in the same period last year; operating profit was $76 million, compared with $40 million in the same period last year.

Intel's third-quarter revenue from all other businesses was $81 million, compared with $106 million in the same period last year; operating loss was $1.046 billion, compared with an operating loss of $575 million in the same period last year.

Performance Outlook:

Intel expects revenue of approximately $19.2 billion in the fourth quarter of fiscal 2021, and adjusted revenue of approximately $18.3 billion not in accordance with US GAAP, slightly exceeding analysts' expectations; gross profit margin of approximately 51.4%, and gross profit margin of approximately 53.5% not in accordance with US GAAP; tax rate of approximately 37% in accordance with US GAAP, and tax rate of approximately 13% not in accordance with US GAAP; earnings per share of approximately $0.78, and adjusted earnings per share of approximately $0.90 not in accordance with US GAAP, which is lower than analysts' expectations. According to data provided by Yahoo Finance Channel, 30 analysts on average expect Intel's adjusted revenue in the fourth quarter to reach $18.25 billion, and 33 analysts on average expect Intel's adjusted earnings per share in the fourth quarter to reach $1.01.

Intel expects revenue of approximately $77.7 billion in fiscal 2021, and adjusted revenue of approximately $73.5 billion not in accordance with US GAAP, slightly lower than analysts' expectations; gross profit margin of approximately 55%, and gross profit margin of approximately 57% not in accordance with US GAAP; tax rate of approximately 15% in accordance with US GAAP, and tax rate of approximately 9% not in accordance with US GAAP; earnings per share of approximately $4.50, and adjusted earnings per share of approximately $5.28 not in accordance with US GAAP, exceeding analysts' expectations; capital expenditure of approximately $18 billion to $19 billion; free cash flow of approximately $12.5 billion. According to data provided by Yahoo Finance Channel, 36 analysts on average expect Intel's adjusted revenue in fiscal 2021 to reach $73.6 billion, and 38 analysts on average expect Intel's adjusted earnings per share in fiscal 2021 to reach $4.79.

Stock price changes:

On the same day, Intel's stock price rose by $0.63 in regular trading on the Nasdaq, closing at $56.00, an increase of 1.14%. In the subsequent after-hours trading that ended at 5:44 p.m. Eastern Time on Thursday (5:44 a.m. Beijing Time on Friday), Intel's stock price fell sharply by $5.00 to $51.00, a drop of 8.93%. In the past 52 weeks, Intel's highest price was $68.49 and its lowest price was $43.61.