Intel Earnings: Crushes Estimates, Stock Surges
Chip giant Intel (INTC) this afternoon reportedQ1 revenue and profit that easily surpassed analysts' expectations, and an outlook that was also well above consensus, driving shares up sharply in late trading.
Said Krzanich, "Our PC business continued to execute well and our data-centric businesses grew 25%, 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."
Revenue in the three months ended in March rose to $16.1 billion, yielding earnings per share of 87 cents.
Analysts had, on average, been modeling $15.074 billion in revenue and EPS of 72 cents.
Intel's own forecast, offered back in January, had been for revenue of $14.5 billion to $15.5 billion and EPS of 65 cents to 75 cents.
Looking at individual lines of business for Intel, revenue for the "client computing group" that sells PC chips rose 3% to $8.2 billion.
The "programmable solutions group" that sells "FPGAs" for servers saw revenue surge 17% to $498 million.
Revenue for the "data center group" that sells server processors soared 24% to $5.2 billion.
The "non-volatile solutions group" that sells things such as NAND flash memory chips, saw revenue soar 20% to $1 billion.
Revenue for the "Internet of Things" business rose 17% to $840 million.
For the current second quarter, Intel sees revenue of $15.8 billion to $16.8 billion, and EPS of 80 cents to 90 cents. That compares with consensus estimates for revenue of $15.59 billion and EPS of 81 cents.
For the full year, the company sees revenue in a range of $66.5 billion to $68.5 billion, and EPS of $3.80 to $3.90. That compares with consensus estimates for revenue of $65.11 billion and EPS of $3.57.
Intel shares are up $2.77, over 5%, at $55.82, in late trading.
Update: Intel shares keep gaining, now up $4.20, almost 8%, at $57.25.
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