Intel reports 3Q2021 financial results

Intel is in everyone’s focus now because of the unleashing semiconductor shortage saga. Intel updated its shortage forecast several times during this and previous years, so now the company warns that the issue may persist through 2023.

The company's market capitalization now stands at $227.19 billion. The report was published after the market close, and the shares fell 8.8%. INTC share price now is $50.45.

The summary of financial results is presented below:

• Q3 GAAP revenues of $19.2 billion, up 5% YoY, and non-GAAP revenues of $18.1 billion, 5% up compared to the same period last year. The company reached record revenue for the Intel Internet of Things Group (IOTG) and record Q3 revenue for the Data Center Group (DCG) and Mobileye.

• Earnings per share (GAAP) for Q3 were $1.67; Non-GAAP net income per share was $1.71, up $0.61 over the July forecast. The company beat the July consensus forecast for earnings per share and gross profit.

• In Q3, the company has built $9.9 billion in cash from operating activities and paid out $ 1.4 billion in dividends.

• Intel, however, downgraded its guidance for net earnings per share and gross profit through 2021. Now it expects GAAP EPS of $4.50, non-GAAP EPS of $5.28. The company forecasts further erosion of gross margins with a rather tangible dip to 53.5% in Q4'21. Importantly, the numbers were still boosted by a tax rate of just 0.4% and a large gain on equity investments.

All in all, Q3 2021 showed greater global demand for semiconductors – mainly on well-known supply bottlenecks, but semis remain the area where Intel certainly dominates. The main concern is that Intel’s market position is being increasingly challenged by AMD and Nvidia. The company has laid the foundation for new ventures, tuned process performance, and introduced the most advanced architectural innovations in a decade. The company also announced major advances in customer base development across all business segments. However, after the change of the company's CEO in early 2021, Intel still has a long way to go to implement all plans.