Intel Earnings for Q3 2015 (Nasdaq: INTC)

4:30 p.m. UPDATE: The Intel Q3 earnings (Nasdaq: INTC) beat expectations and showed further progress in two key areas, the Data Center Group and the Internet of Things Group.

Q3 2015 revenue was $14.5 billion, beating Wall Street forecasts for sales of $14.23 billion. That's slightly below the $14.6 billion reported in the same quarter last year.

Earnings per share (EPS) was $0.64, which bested expectations for $0.59 a share. EPS was down 3% year over year. Gross margin also slipped a bit, from 65% last year to 63% in Q3 2015.

Intel stock was holding steady at about $32 in after-hours trading.

Part of the reason for the beat was a better than expected performance from PC chip sales, which rose 13% from the previous quarter to $8.5 billion even though sales fell 7% year over year. It's an indication the new Skylake chips are gaining traction - a good sign for Q4 earnings.

The Data Center Group had the strongest showing with a 12% increase in revenue to $4.1 billion. The Internet of Things Group also did well, with revenue up 10%, to $581 million, from the year-ago quarter.

Previous story follows...

Intel earnings for Q3 2015 come out today among unenthusiastic expectations - but now's the time to be bullish on Intel stock (Nasdaq: INTC).
For the Intel Q3 earnings, Wall Street forecasts the company to earn $0.59 a share on revenue of $14.23 billion. That would be a 10.6% drop in EPS from the same period a year ago and a 2.2% decline in revenue.

But a disappointing earnings report for Intel does not tell the whole long-term story for this chip maker...

You see, Intel famously missed out on the mobile revolution and has paid the price in the past few years as PC sales have declined.

But Intel learned its lesson and several years ago set about developing new chip technologies targeted at computing's future - mobile, data centers (cloud computing), wearable tech, and the Internet of Things.

Now that strategy shift is on the verge of fruition, as more of the company's new chip technology finds its way into shipping products.

Over the past two years, the company has debuted these new chip initiatives, with two of the biggest coming this year.

As these new products gain traction among hardware makers, Intel's earnings will rise - and the INTC stock price along with it.

In fact, regardless of Intel Q3 earnings results today, there are four big reasons we're bullish on INTC stock now...

Intel Q3 Earnings Today Fail to Show This Full Potential

• Data Centers/Cloud Computing - Intel dominates the data center market with a 98% share. It accounts for 30% of revenue and 64% of profits. It's growing - and the April acquisition of Altera Corp. (Nasdaq: ALTR) brings specialized chip technology that will prove huge for this revenue.
• PCs/Tablets/Hybrids - While Intel has ruled the PC market since the 1980s, it has struggled in the tablet market. But the new Skylake chips introduced in September change the equation - and will add significant growth to Intel's bottom line.
• Internet of Things - The installed base of IoT devices is expected to grow from 10 billion today to 30 billion by 2020. And research firm IoT Analytics sees Intel at the top of the list of companies reaping the most benefit.
• NAND Memory - Intel also has developed a new kind of NAND memory technology, 3D XPoint, as part of a partnership with Micron Technology Inc. (Nasdaq: MU). The new technology was unveiled in July. NAND memory accounts for only 8% of Intel's revenue. But with just 7% of the market and a breakthrough new technology, NAND memory will become a key growth area for Intel in the years ahead.

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