Intel (INTC, Financial) reported third quarter earnings after the market closed on Thursday, Oct. 26. The technology company beat estimates for both revenue and earnings. It is also paying a quarterly dividend of 27 cents on Dec. 1 with an ex-dividend date of Nov. 6.
Third Quarter Earnings
Third quarter revenue of $16.15 billion beat estimates by $420 million and increased 2% from the comparable quarter. Third quarter revenue contributed to total revenue of $45.7 billion which is now up 6% from 2016. For the year the client computing group is the leading revenue generator with 55% of the total. The non-volatile memory solutions group is leading sales growth with an increase of 49%.
Net income for the third quarter was $4.85 billion, reporting an increase of 25% from the comparable quarter. For the year net income is $11.57 billion and is reporting an increase of 23%. Earnings per share for the quarter were $1.01, increasing 26% from the comparable quarter and beating estimates by 21 cents. Earnings per share for the year are $2.39, an increase of 24% from $1.92.
Total operating income for the year is $12.5 billion, representing an increase of 50%. The client computing group is also the company’s greatest income driver with 77% of operating income for the year. The client computing group is reporting the highest growth rate at 36%.
Dividend of 27.25 cents
On Sept. 14 the company also announced its most recent quarterly dividend. Intel will pay 27.25 cents per share on Dec. 1 with an ex-dividend date of Nov. 6. The stock has a forward dividend yield of 2.45%.
Intel has held the dividend steady at 27.25 cents per share for the last three quarters. The last dividend increase was in May 2017. The company increased the dividend to its current rate after five quarters at 26 cents. The stock has a trailing twelve month dividend yield of 2.40%.
Intel Investment
Analysts were bullish on the stock prior to its third quarter earnings. It is reported to have continued upside of 20% or more.
The stock is currently trading at $44.40. Following its earnings report it gained 7.38%. Year to date it has a return of 22.42%. For the one year period the stock is up 27.81% and for the three year period it has a return of 33.82%.
It has 4.7 billion shares outstanding with a market cap of $207.79 billion. Institutional shareholders own 68% of the outstanding stock. Vanguard is the stock’s top institutional investor with 7% of the outstanding shares.
Disclosure: I do not own any shares of Intel.
