Are Record Intel Q2 Revenues Falling Short For Investors?
Chipmaker Intel reported second-quarter earnings per share of $1.23 and $19.73 billion in revenue, compared with consensus estimates that called for earnings of $1.11 per share and $18.55 billion in revenue.
Intel Corp. (NASDAQ: INTC | INTC Price Prediction) 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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
