Intel reports first-quarter 2018 earnings of $6.3 billion
27 Apr 2018
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Intel Corporation has reported earnings of approximately $6.3 billion in cash from operations, a dividend payout of $1.4 billion and buy back of 41 million shares for $1.9 billion.
The company reported record first-quarter revenue of $16.1 billion, up 13 per cent year-over-year on the strength of its data-centric businesses, which, it said, accounted for 49 per cent of first-quarter revenue.
‘Data-centric growth and operating margin leverage boosted earnings-per-share (EPS), which rose 53 per cent year-over-year; non-GAAP EPS was up 32 per cent year-over-year,” Intel stated in its earnings release.
Based on this strong performance, Intel has raised its full-year 2018 revenue and earnings outlook to $67.5 billion, up $2.5 billion from prior guidance.
"Coming off a record 2017, 2018 is off to a strong start. Our PC business continued to execute well and our data-centric businesses grew 25 percent, accounting for nearly half of first-quarter revenue," said Brian Krzanich, Intel CEO. "The strength of Intel’s business underscores my confidence in our strategy and the unrelenting demand for compute performance fueled by the growth of data."
“Compared to the first-quarter expectations we set in January, revenue was higher, operating margins were stronger and EPS was better," said Bob Swan, Intel CFO. "Our data-centric strategy is accelerating Intel’s transformation, and we’re raising our earnings and cash flow expectations for the year."
Intel said its data-centric businesses accounted for approximately half (49 per cent) of its revenue, an all-time high. The Data Center Group (DCG) achieved growth in all market segments and saw increasing adoption of Intel `Xeon’ scalable processors, including for artificial intelligence workloads.
Non-volatile Memory Solutions Group (NSG) revenue grew 20 per cent as strong demand for storage continued. The Programmable Solutions Group (PSG) won new designs with server OEMs adding Intel’s field programmable gate array (FPGA) acceleration to their data center offerings, and strong demand from retail and video customers drove first-quarter growth in the Internet of Things Group (IOTG).
The Client Computing Group (CCG) continued its strong execution and introduced a new lineup of high-performance mobile products, including the 8th Gen Intel Core i9 processor and a new Intel Core platform extension that brings together the benefits of 8th Gen Intel Core processors with Intel Optane memory.
In autonomous driving, Mobileye continued momentum with automotive customers and recently won a high-volume design for EyeQ*5. The company also began operating autonomous vehicle test cars in Israel with plans to expand the fleet to other geographies.
Intel's guidance for the second-quarter and full-year 2018 includes both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
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