Intel Corp. (NASDAQ: INTC) released its most recent quarterly report after markets closed Thursday. The company posted $0.87 in earnings per share (EPS) on $16.1 billion in revenue versus consensus estimates that called for $0.72 in EPS on $15.05 billion in revenue. The first quarter from last year had $0.66 in EPS on $14.8 billion in revenue.
In the first quarter, Intel saw strong performance from data-centric businesses, which accounted for nearly half (49%) of Intel’s revenue, an all-time high. The Data Center Group (DCG) achieved growth in all market segments and saw increasing adoption of Intel Xeon Scalable processors, including for artificial intelligence workloads. Non-Volatile Memory Solutions Group (NSG) revenue grew 20% as strong demand for storage continued. The Programmable Solutions Group (PSG) won new designs with server OEMs adding Intel’s field programmable gate array (FPGA) acceleration to their data center offerings, and strong demand from retail and video customers drove first-quarter growth in the Internet of Things Group (IOTG). The Client Computing Group (CCG) continued its strong execution and introduced a new lineup of high-performance mobile products.
As for the actual breakdown with the numbers, each segment reported:
- CCG revenues increased 3% to $8.2 billion.
- DCG increased 24% to $5.2 billion.
- IOTG increased 17% to $840 million.
- NSG increased 20% to $1.0 billion.
- PSG increased 17% to $498 million.
Looking ahead to the second quarter, Intel expects to see EPS of $0.85, plus or minus $0.05, and revenues of $16.3 billion, plus or minus $500 million. There are consensus estimates calling for $0.81 in EPS on $15.55 billion in revenue.
Brian Krzanich, Intel CEO, commented:
Coming off a record 2017, 2018 is off to a strong start. Our PC business continued to execute well and our datacentric businesses grew 25 percent, accounting for nearly half of first-quarter revenue. The strength of Intel’s business underscores my confidence in our strategy and the unrelenting demand for compute performance fueled by the growth of data.
Shares of Intel closed Thursday at $53.05, with a consensus analyst price target of $54.69 and a 52-week range of $33.23 to $54.36. Following the announcement the stock was up about 8% at $57.36 in the after-hours session.