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Intel Posts Q1 Earnings Beat, Internet of Things Revenue Up 11%

Madeleine Johnson

Intel Corp. INTC just released its first-quarter fiscal 2017 financial results, posting earnings of 66 cents per share and revenues of $14.8 billion. Currently, INTC is a #4 (Sell), and is down 4.3% to $35.82 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company reported earnings of 66 cents per share, beating the Zacks Consensus Estimate of 65 cents per share. This number excludes 5 cents from non-recurring items.

Matched revenue estimates. The company saw revenue figures of $14.8 billion, matching our consensus estimate of $14.807 billion and increasing 8% year-over-year on a GAAP basis and 7% year-over-year on a non-GAAP basis.

Intel’s Internet of Things Group revenue was $721 million, up 11%, while its Client Computing Group revenue came in at $8 billion, up 6%.

Looking ahead, Intel raised its full-year 2017 revenue outlook by $500 million and now expects sales of approximately $60 billion. The company also raised its full-year EPS by 5 cents to $2.85 per share.

“The first quarter was another record quarter, coming off a record 2016. We continued to grow our company, shipped our disruptive new Optane memory technology, and positioned Intel to lead in new areas like artificial intelligence and autonomous driving,” said Brian Krzanich, Intel CEO. “The ASP strength we saw across nearly every segment of the business demonstrates continued demand for high-performance computing, which will only increase with the explosion of data.”

Here’s a graph that looks at Intel’s price, consensus, and EPS surprise:

Intel Corporation Price, Consensus and EPS Surprise

Intel Corporation Price, Consensus and EPS Surprise | Intel Corporation Quote

Intel is one of the world's largest semiconductor chip makers. The Company develops advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. It also develops platforms, which it defines as integrated suites of digital computing technologies that are designed and configured to work together to provide an optimized user computing solution compared to components that are used separately. Intel is based in Santa Clara, California.

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