Technology

Are Record Intel Q2 Revenues Falling Short For Investors?

Intel Corp. (NASDAQ: INTC) reported second-quarter financial results after markets closed Thursday. The firm said that it had $1.23 in earnings per share (EPS) and $19.73 billion in revenue, compared with consensus estimates that called for $1.11 in EPS and $18.55 billion in revenue. The same period from last year had $1.06 in EPS and $16.5 billion in revenue.

Intel achieved record second-quarter revenue with 34% data-centric revenue growth and 7% PC-centric revenue growth year over year. These results were driven by strong sales of cloud, notebook, memory and 5G products.

In terms of the specifics, DCG revenue grew 43% year over year, to $7.1 billion, driven by broad strength including 47% growth in cloud service provider revenue.

Internet of Things Group revenue was down 32% to $670 million and Mobileye revenue decreased 27% year over year to $146 million.

Intel’s memory business set a new revenue record in the quarter, revenues increased 76% to $1.7 billion. PSG’s second-quarter revenue was up 2% to $501 million.

The PC-centric business was up 7% to $9.5 billion, driven by the continued work- and learn from home dynamics of COVID-19.

Looking ahead to the third quarter, the company expects to see EPS of $1.10 and revenue of $18.2 billion. Consensus estimates are calling for $1.14 in EPS and $17.9 billion in revenue for the coming quarter.

Shares of Intel closed Thursday at $60.49, with a 52-week range of $43.63 to $69.29. The consensus analyst price target is $62.87. Following the announcement, the stock traded down over 7% at $55.83 in the after-hours session.