When Intel Corp. (NASDAQ: INTC) released its most recent quarterly results after markets closed Thursday, the semiconductor giant posted $0.89 in earnings per share (EPS) and $16.1 billion in revenue. The consensus estimates from Thomson Reuters had called for $0.87 in EPS and $16.02 billion in revenue. In the first quarter of last year, Intel said it had EPS of $0.87 on revenue of $16.07 billion.
In the first quarter, the PC-centric business (CCG) was up 4% in the first quarter due to a strong mix of Intel’s higher performance products and strength in gaming, large commercial and modem.
Collectively, Intel’s data-centric businesses declined 5% year over year. In the Data Center Group (DCG), the cloud segment grew 5% while the communications service provider segment declined 4% and enterprise and government revenue declined 21%. First-quarter Internet of Things Group (IOTG) revenue grew 8%, and Mobileye achieved record first-quarter revenue of $209 million, up 38%. Intel’s memory business (NSG) was down 12% year over year in a challenging pricing environment. Intel’s Programmable Solutions Group (PSG) revenue was down 2%.
Looking ahead to the second quarter of 2019, the company expects to see EPS of $0.89 and revenues near $15.6 billion. Consensus estimates call for $1.01 in EPS and $16.85 billion in revenue for the quarter.
Bob Swan, Intel CEO, commented:
Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of highperformance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half. Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners.
Shares of Intel closed Thursday at $57.61, with a consensus analyst price target of $54.97 and a 52-week range of $42.36 to $59.59. Following the announcement, the stock was down 7% at $53.60 in the after-hours session.