Intel (INTC) reported earnings on Thur 24 Oct 2019 (a/h)

** charts before earnings **

 

** charts after earnings **

Intel beats by $0.18, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY19 EPS above consensus, revs above consensus

Reports Q3 (Sep) earnings of $1.42 per share, $0.18 better than the S&P Capital IQ Consensus of $1.24; revenues rose 0.1% year/year to $19.19 bln vs the $18.07 bln S&P Capital IQ Consensus.

• The PC-centric business (CCG) was down 5 percent in the third quarter on lower year-on-year platform volume, partially offset by a strong mix of Intel's higher performance products as the commercial segment of the PC market remained strong. Major PC manufacturers introduced systems featuring the new, 10nm-based 10th Gen Intel Core processors (code-named "Ice Lake"). Eighteen new Ice Lake-powered system designs have shipped to date, with a total of 30 designs expected to launch in 2019. The company also announced new 10th Gen Intel Core mobile PC processors (formerly code-named "Comet Lake") and new Intel Xeon W and X-Series processors for workstations and high-end desktops.
• Collectively, Intel's data-centric businesses achieved record revenue in the third quarter, up 6 percent YoY. The Data Center Group (DCG) delivered record revenue driven by a strong mix of high-performance Intel Xeon processors and growth in every segment of the business. The communications service provider segment grew 11 percent while the cloud segment returned to growth, up 3 percent, and enterprise and government revenue grew 1 percent. The Internet of Things Group (IOTG) also achieved record revenue, up 9 percent on strength in retail and transportation. Mobileye achieved record revenue, up 20 percent YoY on increasing ADAS adoption. Intel's memory business (NSG) also achieved record revenue, up 19 percent YoY. The Programmable Solutions Group (PSG) shipped the first 10nm-based Intel Agilex FPGAs in the third quarter. PSG third-quarter revenue was up 2 percent YoY.

Co issues upside guidance for Q4, sees EPS of $1.24 vs. $1.21 S&P Capital IQ Consensus; sees Q4 revs of $19.2 bln vs. $18.83 bln S&P Capital IQ Consensus.

Co issues upside guidance for FY19, sees EPS of $4.60 vs. $4.38 S&P Capital IQ Consensus; sees FY19 revs of $71.0 bln vs. $69.47 bln S&P Capital IQ Consensus.

Also, Intel announced its board of directors has approved a $20 billion increase in its stock repurchase program authorization.