Intel (INTC) earnings Q3 2019

Intel stock jumped 8% in extended trading on Thursday after the chipmaker beat third-quarter earnings expectations and reignited revenue growth.

Here are the key numbers:

• Earnings: Excluding certain items, $1.42 per share, vs. $1.24 per share as expected by analysts, according to Refinitiv.
• Revenue: $19.19 billion, vs. $18.05 billion as expected by analysts, according to Refinitiv.

Revenue was up slightly on an annualized basis in the quarter that ended on Sept. 28, according to a statement.

The top business segment, the Client Computing Group, which sells processors for desktop PCs, laptops and two-in-one devices, produced $9.71 billion in revenue, beating the $9.59 billion average estimate among analysts polled by FactSet, although it was down 5% from the year-ago period. The company pointed to lower platform volume in the segment.

The next-largest business, the Data Center Group, which focuses on server chips, delivered $6.38 billion in revenue, above the $5.62 billion FactSet consensus estimate. Intel said the cloud portion of the segment returned to growth.

The Internet of Things Group, which makes computing products for industries and embedded systems, had $1.23 billion in revenue. Analysts polled by FactSet had expected $1.12 billion in revenue from that segment.

Both Gartner and IDC said that PC shipments increased in the third quarter. Meanwhile, spending from companies with large data centers, like Amazon and Microsoft, started to bounce back in the period, both of which could have boosted Intel’s sales, Matt Bryson of Wedbush Securities, who has the equivalent of a sell rating on Intel stock, told clients in a note this week.

But Intel is dealing with issues cutting into shipments of 14-nanometer chips, and the company has slashed prices as it continues to compete with AMD, Bryson wrote.

“From an intermediate to longer term perspective, we believe INTC’s continued misexecution, whether in shorting certain Xeon customers, or PC OEMs/ODMs, should give those clients another reason to look more closely at AMD,” he wrote.

Intel announced the second generation of Optane DC Persistent Memory in the third quarter and said that Apple had agreed to buy the majority of Intel’s smartphone modem business in a deal valued at $1 billion.

In terms of guidance, Intel said it’s looking for $1.24 in earnings per share, excluding certain items, on $19.2 billion in revenue in the fourth quarter, which would amount to an annualized revenue gain of about 2.9%. Analysts polled by Refinitiv had expected $1.21 in earnings per share, excluding certain items, on $18.82 billion for the quarter.

Executives will discuss the results with analysts on a conference call at 5 p.m. Eastern time.

Intel stock is up 11% since the beginning of the year.

This is breaking news. Please check back for updates.

WATCH: Intel CEO reveals a roadmap for autonomous vehicles