Its the season when everyone posts their financial details folks, and Intel Corp has just released its quarterly results. The company has managed to post earnings of well over 60 cent per share, and revenues in excess of $14.8 Billion — as compared to $13.8 Billion a year ago.
Intel beats estimates slightly, which hovered around 65 cents per share, registering 66 cents a share. And of course, you can add in another 5 cents to that number, if you include 5 cents from non-recurring items.
Intel registered revenues of $14.8 Billion, which was pretty much what analysts were expecting. The revenue increased 8% year-over-year on a GAAP basis and 7% year-over-year on a non-GAAP basis. Interestingly enough, Internet of Things group revenue stood at $721 million, an increase of 11 percent. The Client Computing Group meanwhile, brought in a massive $8 Billion. This was an increase of 6 percent.
Speaking on the topic, Brian Krzanich, CEO, Intel, said:
The first quarter was another record quarter, coming off a record 2016. We continued to grow our company, shipped our disruptive new Optane memory technology, and positioned Intel to lead in new areas like artificial intelligence and autonomous driving. The ASP strength we saw across nearly every segment of the business demonstrates continued demand for high-performance computing, which will only increase with the explosion of data.
The company has raised its full-year 2017 revenue outlook by $500 million. It now expects sales of somewhere around $60 billion. Intel has also raised its full-year EPS by 5 cents to $2.85 per share.
Intel like many of its semiconductor peers, is struggling with a transition from personal computers to smartphones. Which is why the business has done pretty well, all things considered. Meanwhile, Intel shares fell by around 3 percent in after hour trading.
The company also reported $4.2 Billion from its data center group segments, managing to miss expectations which stood at around $4.349 Billion. This was a tad surprising, considering how the data center industry is booming, but then perhaps the expectations were overly optimistic in the first place. And indeed, Intel CEO Bran Krzanich said that he expected lower profit margins from the data center business back in February.
Intel is pretty optimistic about its outlook for the rest of the year. Speaking at a conference call, Krzanich admitted that he expected results to improve over the rest of the year.
[The first quarter] tends to be the lowest quarter in general…for overall revenue and output and growth in [the data center business]
