A Look Into Intel’s Record Quarter

By Chris Lange Updated Jan 30, 2:07PM EST · Published Oct 24, 4:56PM EDT

A Look Into Intel’s Record Quarter — © Justin Sullivan / Getty Images

When Intel Corp. (NASDAQ: INTC | INTC Price Prediction) released its most recent quarterly results after markets closed Thursday, the semiconductor giant posted $1.42 in earnings per share (EPS) and a record $19.2 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.24 in EPS and $18.05 billion in revenue. In the third quarter of last year, Intel said it had EPS of $1.40 on revenue of $19.16 billion.

The PC-centric business (CCG) was down 5% in the third quarter due to lower year-on-year platform volume, partially offset by a strong mix of Intel’s higher performance products as the commercial segment of the PC market remained strong.

Collectively, Intel’s data-centric businesses achieved record revenue in the third quarter, up 6% year over year. The Data Center Group (DCG) delivered record revenue driven by a strong mix of high-performance Intel 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 grew 1%.

The Internet of Things Group (IOTG) also achieved record revenue, up 9% on strength in retail and transportation.

Mobileye achieved record revenue, up 20% year over year on increasing ADAS adoption. Intel’s memory business (NSG) also achieved record revenue, up 19%. PSG third-quarter revenue was up 2%.

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Looking ahead to the fourth quarter of 2019, the company expects to see EPS of $1.24 and revenues near $19.2 billion. Consensus estimates call for $1.21 in EPS and $18.82 billion in revenue for the quarter.

Bob Swan, Intel’s CEO, commented:

We’ve been on a multiyear journey to reposition Intel’s portfolio to take advantage of the exponential growth of data. Our third-quarter financial performance underscores our progress as our data-centric businesses turned in their best performance ever, making up almost half our total revenue in a record quarter. Our priorities are accelerating growth, improving our execution and deploying capital for attractive returns. We now expect to deliver a fourth record year in a row.

Shares of Intel closed Thursday at $52.23, with a consensus price target of $53.13 and a 52-week trading range of $42.86 to $59.59. Following the announcement, the stock was up nearly 8% at $56.38 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.