Intel Corporation (NASDAQ: INTC) reported a 6% drop in earnings for the third quarter of 2019 due to higher costs and expenses. However, the results exceeded analysts’ expectations. Further, the chipmaker guided fourth-quarter revenue and earnings above the consensus estimates.

Net income dropped by 6% to $6 billion or $1.35 per share. Adjusted earnings rose by 1% to $1.42 per share. Revenue remained flat at $19.2 billion.

Intel (INTC) Q3 2019 Earnings Review

Intel has been facing misfortune due to the ongoing chip shortage as it is struggling to meet demand. However, the top line set an all-time quarterly record backed by data-centric revenue, up 6% year-over-year. PC-centric revenue was in-line with expectations, down 5% compared to last year.

Looking ahead into the fourth quarter, the company expects revenue to be about $19.2 billion and earnings of $1.28 per share. Adjusted earnings are anticipated to be $1.24 per share.

For fiscal 2019, the company lifted its revenue outlook to $71 billion from the previous forecast of $69.5 billion. The earnings guidance is lifted to $4.42 from previous estimate of $4.10, and the adjusted earnings outlook is raised to $4.60 from the prior expectation of $4.14.

For the third quarter, PC-centric business experienced lower year-on-year platform volume despite strong mix of Intel’s higher performance products as the commercial segment of the PC market remained strong.

Read: Cypress Semiconductor Q3 earnings snapshot

The data-centric businesses were benefited by strong mix of high-performance Intel’s Xeon processors and growth in every segment of the business. The communications service provider segment grew 11% while the cloud segment returned to growth, up 3%, and enterprise and government revenue rose 1%.

The Internet of Things Group achieved a 9% growth in revenue on strength in retail and transportation. Mobileye revenue grew by 20% on increasing ADAS adoption. Intel’s memory business achieved a 19% jump in revenue. Revenue from the Programmable Solutions Group rose by 2% after the shipment of first 10-nanometer based Intel Agilex FPGAs in the third quarter.

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