Intel 3Q Profit Tops Street View

Intel (NASDAQ:INTC) said Tuesday afternoon its third-quarter profit fell about 0.7% amid a continued slump in the PC industry.

The chip maker did report better-than-expected results, thanks in part to record data revenue that helped overshadow weaker sales tied to PCs.

The Santa Clara, Calif.-based company reported net income of $2.95 billion, compared to the year-ago period’s $2.97 billion. Earnings remained flat on a per-share basis at 58 cents. Revenue ticked up slightly to $13.48 billion.

Analysts were expecting per-share earnings of 53 cents and revenue of $13.47 billion.

Gross margin widened to 62.4%, well above its prior forecast of 61%.

The company’s data center group logged revenue of $2.9 billion, up 12.2% year-over-year.

Sales at the PC client group fell 3.5% to $8.4 billion, as demand continued to lag over the summer. Last week, research firm IDC estimated a single-digit percentage decline in overall PC demand during the third quarter.

Intel also said it expects slight revenue growth in the current quarter, which is typically the strongest point in the year for PC sales.

Revenue is projected to check in at $13.2 billion to $14.2 billion, while the company expects gross margin of 61%. Analysts were recently estimating fourth-quarter revenue of $14.02 billion.

Shares rallied 1.2% to $23.68 in after-hours trading. The stock is up 13.4% year-to-date as of Tuesday’s close.