By Associated Press,SANTA CLARA, Calif. — Intel Corp. more than doubled its second-quarter profit as sales of its personal computer chips strengthened and the company made further inroads in promising new areas of technology. The world’s largest chipmaker also brightened its outlook for the remainder of the year. The report released Thursday drew a lukewarm reaction from investors as Intel’s stock edged up 13 cents to $35.10 in extended trading. Intel earned $2.81 billion, or 58 cents per share during the three-month period ended July 1. That compared to net income of $1.33 billion, or 27 cents per share, at the same time last year. If not for one-time items unrelated to its ongoing business, Intel said it would have earned 72 cents per share. That figure exceeded the average estimate of 68 cents per share among analysts surveyed by Zacks Investment Research. Intel’s revenue rose 9 percent from last year to $14.76 billion, above the average analyst estimate of $14.41 billion, according to Zacks. Last year’s revenue included a security division that Intel has since spun off into a separate company. If Intel hadn’t owned that division last year, revenue for the latest period would have been up by 14 percent, according to the company. Sales in Intel’s division that includes personal computer chips posted revenue of $8.2 billion, up 12 percent from last year’s second-quarter. Intel CEO Brian Krzanich said the company’s efforts to expand into product lines catering to the still-developing fields of artificial intelligence and self-driving cars are also gaining momentum. For the current quarter ending in early October, Intel expects its per-share earnings to range from 75 cents to 85 cents, above analyst estimates. Intel also raised its earnings estimates for the entire year. The Santa Clara, California, company said it expects revenue in the range of $15.2 billion to $16.2 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $15.35 billion. _____ Elements of this story were generated by Automated Insights (http://ift.tt/1nCTSu9) using data from Zacks Investment Research. Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Read More Intel's 2Q results top analyst views, lifting stock : http://ift.tt/2v420yj
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SANTA CLARA, Calif. (AP) - Intel Corp. more than doubled its second-quarter profit as sales of its personal computer chips strengthened and the company made further inroads in promising new areas of technology. The world's largest chipmaker also brightened its outlook for the remainder of the year. The report released Thursday drew a lukewarm reaction from investors as Intel's stock edged up 13 cents to $35.10 in extended trading. Intel earned $2.81 billion, or 58 cents per share during the three-month period ended July 1. That compared to net income of $1.33 billion, or 27 cents per share, at the same time last year. If not for one-time items unrelated to its ongoing business, Intel said it would have earned 72 cents per share. That figure exceeded the average estimate of 68 cents per share among analysts surveyed by Zacks Investment Research. Intel's revenue rose 9 percent from last year to $14.76 billion, above the average analyst estimate of $14.41 billion, according to Zacks. Last year's revenue included a security division that Intel has since spun off into a separate company. If Intel hadn't owned that division last year, revenue for the latest period would have been up by 14 percent, according to the company. Sales in Intel's division that includes personal computer chips posted revenue of $8.2 billion, up 12 percent from last year's second-quarter. Intel CEO Brian Krzanich said the company's efforts to expand into product lines catering to the still-developing fields of artificial intelligence and self-driving cars are also gaining momentum. For the current quarter ending in early October, Intel expects its per-share earnings to range from 75 cents to 85 cents, above analyst estimates. Intel also raised its earnings estimates for the entire year. The Santa Clara, California, company said it expects revenue in the range of $15.2 billion to $16.2 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $15.35 billion. _____ Elements of this story were generated by Automated Insights (http://ift.tt/1nCTSu9) using data from Zacks Investment Research. Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Read More Intel's 2Q results top analyst views, lifting stock : http://ift.tt/2tHHQGOFor the first time in many years, chipmaking giant Intel is facing real competition in its core PC and data center businesses from a resurgent AMD. But that doesn't appear to hitting Intel's financials much. Intel's second-quarter revenue was $14.8 billion, up 9% from the same quarter of the previous year, with earnings of 72 cents per share. The chipmaker beat Wall Street analysts' estimates of $14.41 billion, with earnings of 68 cents per share. “Q2 was an outstanding quarter with revenue and profits growing double digits over last year,” said Intel CEO Brian Krzanich in a statement. “We also launched new Intel Core, Xeon and memory products that reset the bar for performance leadership, and we’re gaining customer momentum in areas like AI and autonomous driving. With industry-leading products and strong first-half results, we’re on a clear path to another record year." Intel's stock is up 3% in after-hours trading. Sales for its client computing group -- which includes PC and mobile -- was up 12% to $8.2 billion. Its data center group was up 9% to $4.4 billion. Earlier this month, Intel announced its latest data center chip, the Xeon Scalable Processor. Google came out as the first data center planning to adopt the new chip. Intel's memory chip business was its fastest growing -- up 58% year-over-year to $874 million. The Internet of Things unit grew 26% to $720 million. But Intel's programmable chip unit -- from its $16.7 billion acquisition of Altera in 2015 -- shrunk 5% year-over-year to $440 million. "Intel had a very good second quarter," said tech analyst Patrick Moorhead in an email. "What struck me was the diversity of their revenue and their ability to grow in areas where many doubted they could see a lot of growth or success." As the PC industry matures, Intel has relied more heavily on its data center business in recent years. Intel has scrapped others efforts in areas like wearables. Currently, the company's big focus appears to be centered on artificial intelligence in the data center and autonomous vehicles. Last year, Intel spent more than $400 million on a small AI startup, called Nervana, and promoted its cofounder and CEO, Naveen Rao, to head a newly-created AI group at the company. In March, Intel made a massive bet on self-driving cars with a $15.3 billion acquisition of Israeli autonomous vehicle company Mobileye. Follow me on Twitter @aatilley or send me an email: [email protected] Shares of Intel Corp. INTC, +0.63% climbed in Thursday's extended session after the chip maker posted better-than-expected quarterly earnings and raised its full-year guidance. Intel reported its second-quarter earnings more than doubled to $2.8 billion, or 58 cents a share, from $1.3 billion, or 27 cents a share, a year earlier. On an adjusted basis, the tech company would have earned 72 cents a share. Revenue grew 9% to $14.8 billion. Analysts surveyed by FactSet had forecast earnings of 68 cents on revenue of $14.4 billion. Intel also raised its full-year revenue outlook by $1.3 billion to $61.3 billion and adjusted earnings per share by 15 cents to $3. Analysts are predicting revenue of $60.22 billion and EPS of $2.86. Intel shares jumped more than 4% after hours. Read More Intel gains on robust quarterly earnings, upbeat outlook : http://ift.tt/2u2VS5rIntel is trying hard to convince investors that it is a “data company”, not just a chips manufacturer, as it reorients itself towards autonomous cars and the “internet of things”. But its shares jumped as much as 4 per cent on Thursday thanks largely to a strong second-quarter performance in its traditional core market of PC processors. Intel beat Wall Street’s forecast on the top and bottom line and lifted its outlook for the rest of the year, as the chipmaker saw strong growth in both PCs and servers. However, Intel’s outperformance on Thursday was not enough to prevent it losing its title as the world’s top chipmaker by revenues to Samsung, which earlier on Thursday reported sales of Won61tn, or around $54bn. Samsung’s growth has come largely from memory chips, where a supply shortage has driven up pricing. Revenues at Intel were up 9 per cent to $14.8bn in the three months ending in June, compared with the $14.4bn analysts had expected. Growth was 14 per cent after adjusting for the sale of its security division. Its largest division of client computing — which includes PC processors — was up 12 per cent, while its data centre unit gained 9 per cent. Net income was also ahead of market forecasts, up 23 per cent to $3.5bn, after adjusting for certain items, with earnings of 72 cents per share beating Wall Street’s consensus of 68 cents. Intel now expects its full-year sales to be about $1bn better than investors had anticipated, at around $61.3bn, and adjusted earnings per share of $3.00. Brian Krzanich, Intel’s chief executive, said it had been an “outstanding” quarter, driven by new Core X-Series chips that are targeted at videogamers and virtual-reality users, as well as new Xeon processors targeting servers used in artificial intelligence applications. As part of its transformation, Intel is paying $15bn to acquire Mobileye, a maker of sensors for autonomous vehicles. It expects that deal to close in the third quarter. Intel’s shares have been largely left behind by the recent tech stock rally, trading slightly down over the year to date before closing at $34.97. Read More Intel beats forecasts but still loses top chipmaker title to Samsung : http://ift.tt/2v3cOwC(Reuters) - Intel Corp, the world's largest chipmaker, reported a 9.1 percent rise in quarterly revenue, helped by strength in its data center and personal computer businesses. The company's net income rose to $2.81 billion, or 58 cents per share, in the second quarter ended July 1 from $1.33 billion, or 27 cents per share, a year earlier. (http://bit.ly/2h6LbO2) Profit in the prior-year quarter was hurt by a charge of $1.41 billion related to Intel's cost-cutting drive. Revenue rose to $14.76 billion from $12.53 billion. (Reporting by Ismail Shakil in Bengaluru; Editing by Maju Samuel) Read More Intel Second Quaretr Revenue Rises 9.1 Percent : http://ift.tt/2h6MX1xIntel on Thursday will report earnings for the second quarter after markets close. The company will hold a telephone conference with financial analysts at 5 p.m. Eastern time.
Analysts' expectations are in line with Intel's own guidance. The company is heading into second quarter earnings after just beating expectations on EPS and falling just below expectations on revenue in the first quarter of the year. While Intel's Client Computing Group brings in more revenue than any other business segment, the company has been shifting away from the personal computer market, as PC shipments continue to decline. In the past few quarters, Intel has faced a fresh wave of competition from AMD's Ryzen PC chips. Intel explored the markets for wearable devices and the maker community, but it recently closed its healthwearablesgroup and it has sought to kill off some Internet of Things products. Intel's typically high-margin Data Center Group, which includes sales to public cloud infrastructure providers and also competes with AMD, is key – last year its revenue rose 8 percent year over year, compared with the Client Computing Group's 2 percent growth. Earlier this month the Data Center Group unveiled its next generation Xeon Scalable chips, codenamed Purley. "We believe that Intel's Data Center Group segment could deliver faster growth as Purley ramps," MKM Partners managing director Ruben Roy wrote in a note last week. Meanwhile, the company has been talking up its opportunity in artificial intelligence, thanks to acquisitions of companies like Altera, Nervana, Mobileye and Movidius. Intel stock is down 3.5 percent since the beginning of the year. Earlier this month Hilliard Lyons initiated coverage of Intel, writing that "while we note competition is fierce and continues to increase, we believe Intel is in a strong position to outperform peers on a risk-adjusted basis over the coming five-year time frame." This is a breaking news story. Please check back for updates. Read More Intel set to report earnings after the closing bell : http://ift.tt/2eRCJkOThere's a new king in the semiconductor industry. Intel's more than two decade-long reign as the king of the silicon-based semiconductor is poised to end Thursday when South Korea's Samsung Electronics elbows the U.S. manufacturer aside to become the leading maker of computer chips. Samsung reported record-high quarterly profit and sales Thursday. Analysts say it likely nudged aside Intel (INTC) in the April-June quarter as the leading maker of semiconductors, the computer chips that are as much a staple of the 21st century wired world as crude oil was for the 20th century. Samsung said its semiconductor business recorded 8 trillion ($7.2 billion) in operating income on revenue of 17.6 trillion won ($15.8 billion) during the April-June period. Intel, which reports its quarterly earnings later Thursday, is expected to report $14.4 billion in quarterly revenue. On an annual basis, Samsung's semiconductor division is widely expected to overtake Intel's sales this year, analysts at brokerages and market research firms say. Mobile devices and data are the keys to understanding Samsung's ascent as the new industry leader, even as its de facto chief is jailed, battling corruption charges, and it recovers from a fiasco over Galaxy Note 7 smartphones that had to be axed last year because they were prone to catch fire. Manufacturers are packing more and more memory storage capacity into ever smaller mobile gadgets, as increased use of mobile applications, connected devices and cloud computing services drive up demand and consequently prices for memory chips, an area dominated by Samsung. Just as Saudi Arabia dominates in oil output, Samsung leads in manufacturing the high-tech commodity of memory chips, which enable the world to store the data that fuels the digital economy. "Data is the new crude oil," said Marcello Ahn, a Seoul, South Korea-based fund manager at Quad Investment Management. For over a decade, Samsung and Intel each ruled the market in its own category of semiconductor. Intel, the dominant supplier of the processors that serve as brains for personal computers, has been the world's largest semiconductor company by revenue since 1992 when it overtook Japan's NEC. Samsung is reaping the rewards of dominating in the memory chip market which is growing much faster than the market for computers that rely on processing units dominated by Intel, said Chung Chang Won, a senior analyst at Nomura Securities. "Greater use of smartphones and tablet PCs instead of computers is driving the rise of companies like Samsung," Chung said. Since 2002, Samsung Electronics has been the largest supplier of memory chips, called DRAMs and NANDs. But for years demand for memory chips was vulnerable to boom and bust cycles depending on output and on demand from the consumer electronics industry. At times, competition was brutal as supply gluts arose. That changed in 2012 when Japan's Elpida filed for bankruptcy and was sold to Micron Technology, leaving only three major suppliers of DRAM, a type of memory chip used in servers, computers and handsets: Samsung Electronics, SK Hynix and Micron. Tight supplies coupled with rock solid demand have pushed prices of memory chips higher, with average selling prices of DRAMs and flash memory chips doubling over the past year, bringing South Korea's memory chip makers record wide profit margins. Both Samsung and SK Hynix are expected to report all-time high profits this year. Amid this boom that analysts call a memory chip "super cycle," global semiconductor revenue is forecast to jump 52 percent this year, reaching $400 billion for the first time, according to market research firm Gartner. For the full year, Intel is expected to post $60 billion in annual sales, according to a market consensus polled by FactSet, a financial data provider. Samsung Electronics' semiconductor business is expected to report 71.9 trillion won ($62.6 billion) in full-year revenues. Looking ahead, Samsung and SK Hynix, which control more than three quarters of the global DRAM sales, are raising their spending on semiconductor capacity and development in anticipation of robust future demand. SK Hynix raised its capital spending to 9.6 trillion won ($8.6 billion) this year, up more than 50 percent from last year. Samsung has said it plans to spend $18 billion in the next four years to expand memory chip production capacity at its South Korean plants. Not just tech companies but also transport, retail, tourism, food and other industries are seeking ways to better use or manage data, to gain insights on trends or customer preferences and otherwise make money from "big data." The rising use of vehicle connectivity and the "internet of things" is expected to drive still further demand for the chips that have helped Samsung move ahead, at least for now. Read More Samsung is about to dethrone Intel as king of microchips : http://ift.tt/2tFTWAoIntel appears set to surrender its crown as the world's largest chipmaker Thursday afternoon, with two other semiconductor companies surpassing it by two different metrics. The switch doesn't reflect a crisis at Intel, which remains hugely profitable, but rather reflects the changing nature of the industry - and Intel's inability to cash in on those changes. Contract chipmaker Taiwan Semiconductor Manufacturing Co. passed Intel earlier this year as the world's largest chipmaker by market capitalization. Other electronics companies hire TSMC, which has a factory in Camas, Washington, to make chips for smartphones, tablets and a host of new gadgets. And Samsung now appears to be the world's largest chipmaker by revenue. Its chip division reported nearly $16 billion in quarterly sales Thursday, well ahead of the $14.4 billion analysts expect from Intel, which reports its second-quarter results Thursday afternoon. Samsung makes a variety of different chips, for itself and other companies, but it is the surging market for memory chips that has given it the current boost. Intel, by comparison, primarily makes chips for itself and focuses on one market: microprocessors, the brains that do the thinking inside personal computers and data centers. Intel dominates both markets but the PC industry has stalled, and growth in the data center sector has been disappointing over the past few years. Other semiconductor companies have passed Intel in market value before, but Intel has been the largest chipmaker by revenue for the past 25 years. Recognizing the industry's changing dynamics, Intel eliminated 15,000 jobs last year in the largest restructuring in its history. It replaced many of those workers with new positions aimed at new markets. Despite last year's job cuts Intel employs more workers than any other business in Oregon. It has 19,300 at its factories, research labs and corporate offices in Washington County. (Intel is no longer Oregon's largest private employer, though; Providence Health & Services has more than 21,000 workers in the state.) Intel is trying to expanding into some of tech's hotter sectors, investing in its memory chip business and spending $15.3 billion to buy an Israeli company, Mobileye, which makes technology for self-driving cars. It's also betting heavily on emerging technologies, such as connected appliances known as the Internet of Things and artificial intelligence. At the moment, though, those markets are relatively small with uncertain prospects. Intel cut more than 100 jobs over the past couple months as it dropped one line of IoT chips, and there are signs it plans a broader restructuring in its new technology group, formed just last year. Intel dropped all mention of the division from its last quarterly report. -- Mike Rogoway; twitter: @rogoway; 503-294-7699 Read More Intel: no longer the world's largest chipmaker? : http://ift.tt/2vMgKQiIntel Corp. is scheduled to announce second-quarter earnings after the market closes Thursday. Here’s what to look for: EARNINGS FORECAST: For the quarter that ended in June, analysts expect Intel to report earnings of 68 cents a share on an adjusted basis, according to a survey by Thomson Reuters, up 15% from 59 cents the same quarter a year... Read More Intel Earnings: What to Watch : http://ift.tt/2vafYzD |
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