Intel Q1 Earnings Meet Views
Intel Corporation (NASDAQ: INTC) reported in-line earnings for its first quarter on Tuesday.
The Santa Clara, California-based company posted quarterly earnings of $2 billion, or $0.41 per share, compared to $1.9 billion, or $0.38 per share, in the year-earlier period.
Its sales came in flat at $12.8 billion. However, analysts were projecting a profit of $0.41 per share on sales of $12.83 billion.
Data Center Group revenue gained 19 percent y/y to $3.7 billion, while Internet of Things Group revenue climbed 11 percent to $533 million. Client Computing Group revenue slipped 8 percent to $7.4 billion in the latest quarter, while Software and services operating segments revenue dropped 3 percent to $534 million.
Operating income climbed 4 percent year-over-year to $2.6 billion.
Its gross margin widened to 60.5 percent from 59.6 percent.
The average estimate among 110 Estimize users was for earnings of $0.45 per share and revenue of $13.05 billion.
"Year-over-year revenues were flat, with double-digit revenue growth in the data center, IoT and memory businesses offsetting lower than expected demand for business desktop PCs," said Intel CEO Brian Krzanich. "These results reinforce the importance of continuing to execute our growth strategy."
For the second quarter, Intel expects revenue of $13.2 billion, plus or minus $500 million.
The company lowered its 2015 capital spending forecast to $8.7 billion, plus or minus $500 million. It also expects approximately flat revenue for the full year 2015.
Intel shares climbed 3.02 percent to $32.44 in the after-hours trading session.
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