Intel beat earnings and revenue estimates
Chipmaker Intel (INTC) announced its second-quarter earnings on Thursday, July 26. It beat both earnings and revenue estimates, but the stock fell more than 6% in after-hours trading due to worries about delays in launching new, denser chips.
Intel generated $16.96 billion in revenue, a 14.9% increase YoY (year-over-year) and higher than analysts’ estimate of $16.77 billion. Its revenue growth was faster than the first quarter when its revenue grew 8.6% YoY.
Its net income surged 78% YoY in the second quarter to $5.01 billion. On a per-share basis, excluding some items, it earned $1.04 per share compared to Wall Street’s expectation of $0.96 per share.
Intel’s data-center unit saw robust growth but missed estimates
Intel’s lucrative data-center group generated $5.55 billion in revenue, rising 27% YoY, driven by growth in the cloud-computing industry. However, that growth was slightly less than the 29% that analysts were expecting.
The unit, which sells chips to PC makers, saw its revenue climb 6% YoY to $8.73 billion. The segment was aided by the best shipment growth in PCs in years. That said, Intel’s PC unit still makes up more than half of its overall revenue, weighing on the company’s overall growth since the PC market has hit maturity.