Semiconductor firm Intel releases Q2 results tonight after the close with a conference call slated to begin at 5:00 p.m. ET.

The Capital IQ Consensus Estimate sees Q2 EPS of $0.90 (vs $1.04 a year ago) on revenue declines of 7.4% to $15.70 bln.

Guidance for Q2 stands at EPS of $0.89 on revs of approx $15.6 bln.

Intel will likely give Q3 guidance in the press release; the current Cap IQ Estimate calls for EPS of $1.16 and revs of $17.76 bln.

For FY19 Intel sees EPS of $4.35 on revs of approx $69.0 bln vs the Capital IQ Consensus Estimate of $4.22 and $68.32 bln.

INTC was the subject of some recent periodical headlines that Apple (AAPL) was a potential suitor for INTC's smartphone modem business, essentially a re-hash of a story from the day after last quarter's print.


Intel currently trades at about 3.7x forward sales vs peers Texas Instruments (TXN) 8.2x, Micron's (MU) 2.8x, and Advanced Micro's (AMD) 4.9x multiples.


🧨🧨🧨Intel beats by $0.16, beats on revs; guides Q3 EPS, revs above consensus; raises FY19 EPS, revs outlook 🧨🧨🧨

Reports Q2 (Jun) earnings of $1.06 per share, $0.16 better than the S&P Capital IQ Consensus of $0.90; revenues fell 2.7% year/year to $16.5 bln vs the $15.7 bln S&P Capital IQ Consensus.

  • Achieved 1% growth in the PC-centric business while data-centric revenue declined 7%.

  • The PC-centric business (CCG) was up 1% in the second quarter due to a strong mix of Intel's higher performance products, strength in the commercial segment, and customers buying ahead of possible tariff impacts. New, 10nm-based 10th Gen Intel Core processors (code-named "Ice Lake") are now shipping, and expected to be in volume systems on retail shelves this 2019 holiday selling season.

  • Collectively, Intel's data-centric businesses declined 7% yr/yr in the second quarter. In the Data Center Group (DCG), the communications service provider segment grew 3% while the cloud segment declined 1% and enterprise and government revenue declined 31%. The Internet of Things Group (IOTG) achieved record revenue, up 12% yr/yr (23% excluding Wind River1 ) on broad strength and increased demand for higher performance processors. Mobileye achieved second-quarter revenue of $201 million, up 16% yr/yr on continued customer momentum. Intel's memory business (NSG) was down 13% yr/yr in a challenging pricing environment. Intel's Programmable Solutions Group (PSG) revenue was down 5% yr/yr in the second quarter.

  • Co issues upside guidance for Q3, sees EPS of approx. $1.24 vs. $1.16 S&P Capital IQ Consensus; sees Q3 revs of approx. $18.0 bln vs. $17.76 bln S&P Capital IQ Consensus.

  • Co raised FY19 guidance -- sees EPS of approx. $4.40 (from $4.35) vs. $4.22 S&P Capital IQ Consensus; sees FY19 revs of approx. $69.5 bln (from $69.0 bln) vs. $68.32 bln S&P Capital IQ Consensus.

  • Intel's Business Outlook does not include the potential impact of our agreement to sell the majority of our smartphone modem business, announced today. Upon close, we expect a gain on divestiture of approximately $500 million net of tax, which will be excluded on a non-GAAP basis.

  • Also announced deal to sell its smartphone modem business for $1 bln to Apple (AAPL). See 16:01 comment for more details.

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