Intel’s revenue jumps 20% in the fiscal second quarter

Intel Corp (NASDAQ: INTC) published its quarterly financial results on Thursday that came in stronger than what the experts had forecast. Owing to the Coronavirus disruptions, the company said that the next-generation chips were likely to take longer to hit the market than it had originally anticipated. Intel’s earnings report came in a day after Microsoft reported its quarterly results.

Shares of the company tanked about 10% in after-hours trading on Thursday. At £42.83 per share, the £200.84 billion company that has a price to earnings ratio of 11.69, has recovered more than 20% from the year to date low of £35 per share in March. Learn more about the financial analysis of a company.

Intel’s Q2 financial results versus analysts’ estimates

According to Refinitiv, analysts had expected the company to print £14.56 billion in revenue in the second quarter. Their estimate for earnings per share (EPS) was capped at 87 pence. In its report on Thursday, Intel topped both estimates posting a higher £15.49 billion in revenue (20% higher on a year over year basis) and 97 pence of adjusted earnings per share in Q2.

Intel said that it generated £7.46 billion in revenue from its Client Computing Group that represents a 7% growth as compared to the same quarter last year and tops experts’ forecast of £7.14 billion. The segment manufactures chips that are widely used in personal computers.

The Data Centre Group, on the other hand, saw a much broader 43% increase in revenue in the second quarter to £5.59 billion. As per FactSet, analysts had expected the company to register £5.19 billion in revenue from the segment that produces chips for server makers and cloud providers.

At £1.30 billion, revenue from Intel’s Non-Volatile Memory Solutions Group also topped the analysts’ estimates of £1.01 billion and marked a massive 79% growth on an annualised basis.

Intel’s Q3 and full-year financial guidance

The highlights of Intel’s second quarter include a £706.50 million investment to acquire Moovit (mobility start-up). The company also inked an agreement with MaxLinear that purchased its home gateway platform for £118 million. Intel also launched new chips in Q2 for laptops and gaming PCs.

For the third quarter, the American technology company now forecasts 86 pence of adjusted EPS and £14.29 billion in revenue versus 90 pence of adjusted EPS and £14.06 billion in revenue expected.

For the full year, Intel now expects £3.81 of adjusted EPS and £58.90 billion in revenue versus £3.78 of adjusted EPS and £58.01 billion in revenue expected.