NASDAQ$INTC

Intel · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Intel's Q3 2020 financial results were reported, demonstrating resilience amidst pandemic-related impacts and exceeding expectations.

Intel reported Q3 2020 revenue of $18.3 billion, a 4% decrease year-over-year, but above expectations. GAAP EPS was $1.02, down 25% YoY, while non-GAAP EPS was $1.11, down 22% YoY, also exceeding expectations. The company is raising full-year expectations, projecting 5% top-line growth with revenue of $75.3 billion, GAAP EPS of $4.55, and non-GAAP EPS of $4.90.

  • Third-quarter revenue was $18.3 billion, exceeding July expectations but down 4% year-over-year.
  • GAAP EPS was $1.02, a 25% decrease year-over-year, while non-GAAP EPS was $1.11, a 22% decrease year-over-year, both above July expectations.
  • Generated $8.2 billion in cash from operations and paid dividends of $1.4 billion during the third quarter.
  • Announced an agreement to sell the Intel NAND memory and storage business to SK hynix for $9.0 billion.

Headline financials

Total Revenue

$18.3B

Previous: $19.2B-4.5%
EPS (adj)

$1.11

Previous: $1.42-21.8%
Gross Margin

53.1%

Previous: 58.9%-9.8%
Tax Rate

15.2%

Previous: 10.8%+40.7%
Capital Expenditures

-$10.4B

Previous: -$11.5B+10.0%
Free Cash Flow

-$6.12B

Previous: -$5.56B-10.1%
Net Income

$4.28B

Previous: $5.99B-28.6%
Operating Income

$5.06B

Previous: $6.45B-21.5%
Gross Profit

$9.74B

Previous: $11.3B-13.8%
Cash & Equivalents

$3.36B

Previous: $3.94B-14.7%
Total Assets

$145B

Previous: $134B+8.6%
Stock-Based Comp

$452M

Previous: $431M+4.9%

Revenue & EPS history

Intel · Revenue · Quarterly

$18.3B

Q3 2020-4.5%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Intel · $15.9B total across 3 segments · Q3 2020

  • Client Computing
    $9.85B+1.4%
  • Data Center and AI
    $5.91B-7.5%
  • All Other
    $106M+58.2%

Forward guidance

Intel's guidance for Q4 2020 includes revenue of approximately $17.4 billion, an operating margin of 24.5%, a tax rate of 14.5%, and earnings per share of $1.02. For the full year 2020, revenue is projected to be approximately $75.3 billion, with an operating margin of 29.5%, a tax rate of 14.5%, and earnings per share of $4.55.

Tailwinds

  • Revenue is expected to be $17.4 billion.
  • Operating margin is anticipated to be 24.5%.
  • Tax rate is projected at 14.5%.
  • Earnings per share are estimated to be $1.02.
  • Full-year revenue is expected to be $75.3 billion.

Headwinds

  • Actual results may differ materially due to various risks and uncertainties.
  • The COVID-19 pandemic could adversely affect Intel's financial condition and results of operations.
  • Demand for Intel's products is highly variable and can differ from expectations.
  • Intel's results can vary significantly based on capacity utilization and inventory valuation.
  • Intel's results can be affected by adverse economic, social, political, and infrastructure conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.4%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.7%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+10.0%

Q4 2017

Best reaction

-30.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+41.9%+79.5%
Q4 2025-11.4%-10.2%-18.8%
Q3 2025-7.0%+8.3%-9.6%
Q2 2025+1.9%+8.5%+10.4%
Q1 2025-6.7%-6.5%-6.7%
Q4 2024-2.9%-1.8%+18.6%
Q3 2024+4.0%+4.6%+7.8%
Q2 2024-30.1%-35.5%-28.3%
Q1 2024-7.6%-11.7%-11.0%
Q4 2023-11.1%-12.6%-12.4%
Q3 2023+8.3%+11.2%+33.9%
Q2 2023+7.2%+4.2%-3.2%
Q1 2023+6.9%+2.5%-0.2%
Q4 2022-5.2%-4.8%-15.4%
Q3 2022+6.8%+4.0%+7.8%
Q2 2022-9.6%-10.4%-17.0%
Q1 2022-3.6%-0.4%-1.5%
Q4 2021-5.8%-4.3%-6.5%
Q3 2021-10.7%-12.8%-10.6%
Q2 2021-5.7%-5.4%-7.5%
Q1 2021-7.0%-9.0%-12.0%
Q4 2020-3.4%+1.8%+8.5%
Q3 2020-9.9%-14.7%-15.2%
Q2 2020-17.1%-19.3%-19.3%
Q1 2020-1.4%-2.2%+3.6%
Q4 2019+9.2%+7.3%+2.6%
Q3 2019+9.2%+8.9%+11.4%
Q2 2019-2.5%-2.3%-15.0%
Q1 2019-10.7%-13.1%-24.1%
Q4 2018-1.9%-2.9%+9.5%
Q3 2018+7.7%+12.6%+9.7%
Q2 2018-9.1%-8.3%-9.1%
Q1 2018+2.6%+3.8%+7.9%
Q4 2017+10.0%+7.2%+4.9%
Q3 2017+8.9%+11.5%+9.7%
Q2 2017+1.6%+4.6%-0.2%
Q1 2017-2.1%+0.1%-1.8%
Q4 2016+0.5%-2.6%-3.4%
Q3 2016-4.8%-5.7%-6.1%
Q2 2016-2.5%-1.3%+0.3%
Q1 2016+1.1%
Q4 2015-6.7%
Q3 2015+1.8%
Q2 2015+0.8%
Q1 2015+3.5%
Q4 2014+0.3%
Q3 2014-0.6%
Q2 2014+10.0%
Q1 2014+1.4%
Q4 2013-3.1%
Q3 2013+1.1%
Q2 2013-4.2%
Q1 2013+2.6%
Q4 2012-3.9%
Q3 2012+0.3%
Q2 2012+4.3%
Q1 2012-1.6%
Q4 2011-0.1%
Q3 2011+0.3%
Q2 2011-0.9%
Q1 2011-1.2%
Q4 2010-0.7%
Q4 2008-0.7%
Q3 2010-0.4%
Q2 2010+0.6%
Q4 2009+0.6%
Q1 2009-1.2%
Q1 2010+0.4%
Q4 2007-2.1%
Q3 2009-3.2%
Q3 2008-3.2%
Q2 2009+0.4%
Q2 2008+0.4%

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