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Intel (INTC) Stock Soars on Earnings Beat, Strong Guidance

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Intel Corporation (INTC - Free Report) just released its latest quarterly financial results, posting adjusted earnings of 87 cents per share and revenues of $16.1 billion.

Currently, INTC is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have lost about 2% over the past month but added nearly 3.3% during regular trading hours today.

The stock is currently up 8.3% to $57.44 per share in after-hours trading shortly after its earnings report was released.

Intel:

Beat earnings estimates. The company posted non-GAAP earnings of $0.87 per share, crushing the Zacks Consensus Estimate of $0.71. Investors should note that this consensus projection has trended upward over the duration of the quarter.

Beat revenue estimates. The company saw revenue figures of $16.1 billion, surpassing our consensus estimate of $15.05 billion. Total revenue, excluding McAfee, was up 13% year over year.

Gross margin was down one points to 62.3%. Operating income increased 21% to touch $4.8 billion. The company’s effective tax rate was 11.7%, down from 22.3% last year. Non-GAAP net income totaled $4.2 billion, up 30% year over year.

Revenues in the Client Computing Group were up 3% to $8.2 billion. The Data Center Group witnessed growth of 24% and saw total revenues of $5.2 billion. The Non-Volatile Memory Solutions Group generated revenue of $1.0 billion, surging 20% year over year.

“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,” said CEO Brian Krzanich.

Intel expects Q2 revenue to fall in the range of $15.8 billion to $16.8 billion. Non-GAAP earnings are expected to come in the range of $0.80 to $0.90 per share. Our latest Zacks Consensus Estimates were calling for earnings of $0.80 per share and revenues of $15.54 billion.

Here’s a graph that looks at Intel’s recent earnings performance:

Intel Corporation Price, Consensus and EPS Surprise

Intel Corporation Price, Consensus and EPS Surprise | Intel Corporation Quote

Intel Corporation is one of the world's largest semiconductor chip makers. Intel designs and manufactures computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components.

Check back later for our full analysis on INTC’s earnings report!

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