Intel Hurdles Q1 Earnings, Not So Much Guidance

By Chris Lange Updated Jan 30, 9:33PM EST · Published Apr 25, 4:20PM EDT

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When Intel Corp. (NASDAQ: INTC | INTC Price Prediction) released its most recent quarterly results after markets closed Thursday, the semiconductor giant posted $0.89 in earnings per share (EPS) and $16.1 billion in revenue. The consensus estimates from Thomson Reuters had called for $0.87 in EPS and $16.02 billion in revenue. In the first quarter of last year, Intel said it had EPS of $0.87 on revenue of $16.07 billion.

In the first quarter, the PC-centric business (CCG) was up 4% in the first quarter due to a strong mix of Intel’s higher performance products and strength in gaming, large commercial and modem.

Collectively, Intel’s data-centric businesses declined 5% year over year. In the Data Center Group (DCG), the cloud segment grew 5% while the communications service provider segment declined 4% and enterprise and government revenue declined 21%. First-quarter Internet of Things Group (IOTG) revenue grew 8%, and Mobileye achieved record first-quarter revenue of $209 million, up 38%. Intel’s memory business (NSG) was down 12% year over year in a challenging pricing environment. Intel’s Programmable Solutions Group (PSG) revenue was down 2%.

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Looking ahead to the second quarter of 2019, the company expects to see EPS of $0.89 and revenues near $15.6 billion. Consensus estimates call for $1.01 in EPS and $16.85 billion in revenue for the quarter.

Bob Swan, Intel CEO, commented:

Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of highperformance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half. Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners.

Shares of Intel closed Thursday at $57.61, with a consensus analyst price target of $54.97 and a 52-week range of $42.36 to $59.59. Following the announcement, the stock was down 7% at $53.60 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.