Are Intel Earnings Enough for Investors?
Intel reported first-quarter financial results EPS of $1.45 and $19.8 billion in revenue, compared with consensus estimates that called for $1.28 in EPS and $18.7 billion in revenue. It's the outlook that was weak.
Intel Corp. (NASDAQ: INTC | INTC Price Prediction) reported first-quarter financial results after markets closed Thursday. The firm said that it had $1.45 in earnings per share (EPS) and $19.8 billion in revenue, compared with consensus estimates that called for $1.28 in EPS and $18.7 billion in revenue. The same period from last year had $0.89 in EPS and $16.06 billion in revenue.
For the quarter, Data Center Group revenue grew 34% year over year, driven by broad strength including 53% year-over-year growth in cloud service provider revenue.
Internet of Things Group revenue was down 3% to $883 million and Mobileye revenue increased 22% year over year to $254 million.
Intel’s memory business was up 46% to $1.3 billion. PSG’s first-quarter revenue was up 7% to $519 million.
The PC-centric business was up 14% on improved CPU supply and demand strength as consumers and businesses are relying on PCs for working and learning from home.
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Looking ahead to the second quarter, the company expects to see EPS of $1.10 and revenue of $18.5 billion. Consensus estimates are calling for $1.19 in EPS and $17.97 billion in revenue for the coming quarter.
Bob Swan, Intel’s CEO, commented:
Our first-quarter performance is a testament to our team’s focus on safeguarding employees, supporting our supply chain partners and delivering for our customers during this unprecedented challenge. The role technology plays in the world is more essential now than it has ever been, and our opportunity to enrich lives and enable our customers’ success has never been more vital. Guided by our cultural values, competitive advantages and financial strength, I am confident we will emerge from this situation an even stronger company.
Shares of Intel closed Thursday at $59.04, with a 52-week range of $42.86 to $69.29. The consensus analyst price target is $63.38. Following the announcement, the stock traded down 5% at $55.89 in the after-hours session.
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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.
