Intel Q3 Financial Results

[Dayman1225]

Documents:
News Release
Presentation

CEO Comments

"We executed well in the third quarter with strong results across the business, and we’re on track to a record year,” said Brian Krzanich, Intel CEO. “I’m excited about our progress and our future. Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”

“In the third quarter, we delivered record earnings, exceeded our EPS expectations, and increased our profit expectations for the full year,” said Bob Swan, Intel CFO. “We feel great about Intel's transformation and where we are nine months into our three year plan.”

Revenue by Market:

GAPP:

Non - GAPP:

In the third quarter, the company generated approximately $6.3 billion in cash from operations, paid dividends of $1.3 billion, and used $1.1 billion to repurchase 31 million shares of stock

News Summary:

• Third-quarter revenue was $16.1 billion. Excluding McAfee, revenue was up 6 percent year-over-year and datacentric* businesses grew 15 percent year-over-year. The data center, Internet of Things and memory businesses all achieved record revenue.

• Record operating income and record earnings per share (EPS), driven by strong data-centric growth, expanding operating margins and gains on the sale of equity investments.

• Raised full-year business outlook for the third consecutive quarter. Full-year revenue outlook raised by $700 million to $62 billion; full-year GAAP EPS outlook raised by $0.27 to $2.93 and non-GAAP EPS by $0.25 to $3.25.

Earnings Call:

• Intel signed long-term NAND supply agreements worth $2B and received $1B (of that) in Q3.
• Intel's data center, IoT, FPGA and memory groups (all growing nicely and steadily) now make up 45% of Intel's revenue, up from 30% in 2012.
• Intel achieved record Core i5+7 shipments.
• Low volume 10nm product ships EOY and high-volume availability in H2'18.
• Modem up 37% YoY
• Mobileye M&A closed 4 months earlier than expected.
• Dalian fab (Fab 68) was >50% NAND output. - Higher than predicted
• Nervana ships in Q4.
  
• Later 10nm (10nm++) is focused on Server, same with 7nm(I assume all 7nm nodes though)
• 49 Qubit Quantum chip by EOY
• Not mentioned in earnings call: 3D XPoint, Intel Custom Foundry business, Xeon Phi, Cascade Lake.

Stock:

• Intel's stock is up 2.18% afterhours, sitting at $42.25 - up from 41.35

 

[Phynaz]

Intel quarterly reports are so boring...

Another quarter, another record. Yawn.

 

[raghu78]

Intel quarterly reports are so boring...

Another quarter, another record. Yawn.

Intel quarterly reports will get very interesting in 2018 and going forward.

 

[jpiniero]

Basically Intel is making more money because they laid off a bunch of people to cut costs while jacking up prices on the notebook processors. They aren't going to be able to do that anymore with Raven Ridge being reasonably competitive. Figure they will have to cut prices big time on DCG too eventually.

 

[caswow]

Basically Intel is making more money because they laid off a bunch of people to cut costs while jacking up prices on the notebook processors. They aren't going to be able to do that anymore with Raven Ridge being reasonably competitive. Figure they will have to cut prices big time on DCG too eventually.

i wouldnt be surprised if they started giving oems more money.