Intel posts earnings of 59 cents a share vs. 53 cents expected

Intel beats on bottom line
Intel beats on bottom line

Intel reported quarterly earnings that beat analysts' expectations on Wednesday, but revenues for the quarter came in slightly lower than expected.

Shares of Intel were down as much as 3 percent in after-hours trading.

In particular, the company reported revenue from its data center and "Internet of Things" segments that slightly missed Wall Street expectations. Intel has previously cast these businesses as the primary profit-growth engines for the company.

The company said that net revenue from its data center business came in at $4.03 billion during the quarter, slightly below analyst expectations of $4.16 billion, according to FactSet. Its "Internet of Things" group brought in $572 million in revenue, lower than Wall Street expectations of $663.8 million, according to FactSet.

Intel CEO Brian Krzanich said that the company is "gaining momentum heading into the second half" of the year.

"While we remain cautious on the PC market, we're forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions," he said in a Wednesday statement.

Last quarter, the legacy tech company announced that it would be cutting 12,000 jobs, roughly 11 percent of its workforce, by 2017. Krzanich said in a Wednesday statement that those restructuring initiatives are "solidly on-track."

Intel said that as a result of this restructuring program, its total number of employees decreased by 6,000 from the first quarter.

The chipmaker reported earnings of 59 cents per share on revenues of $13.53 billion. Analysts expected Intel to post earnings of 53 cents a share on $13.54 billion in revenue, according to a consensus estimate from Thomson Reuters.