Summary
Intel Corporation's (INTC) Q2 2017 10-Q filing shows a strong recovery and growth, with net revenue increasing by 9% year-over-year to $14.8 billion, and by 14% when adjusted for the divested Intel Security Group (ISecG). This growth was propelled by robust performance in the Client Computing Group (CCG) and significant expansion in data-centric businesses, including a notable 58% revenue surge in the Non-Volatile Memory Solutions Group (NSG). Profitability saw a substantial improvement, with operating income soaring by 190% to $3.8 billion and net income more than doubling to $2.8 billion, translating to a diluted EPS of $0.58, up from $0.27 in the prior year. This improved financial performance was supported by an increased gross margin of 61.6% and effective cost management, with R&D and MG&A spending as a percentage of revenue decreasing. The company also generated robust operating cash flow of $4.7 billion in the quarter. Looking ahead, Intel is strategically positioning itself for future growth with the pending acquisition of Mobileye, a leader in autonomous driving technology, expected to close in Q3 2017. The company also continues its share repurchase program and dividend payments, demonstrating confidence in its financial health and commitment to returning value to shareholders.
Financial Highlights
57 data points| Revenue | $14.76B |
| Cost of Revenue | $6.08B |
| Gross Profit | $10.06B |
| R&D Expenses | $3.21B |
| SG&A Expenses | $1.66B |
| Operating Expenses | $4.92B |
| Operating Income | $5.14B |
| Interest Expense | $191.00M |
| Net Income | $4.52B |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 4.69B |
| Shares Outstanding (Diluted) | 4.82B |
Key Highlights
- 1Net revenue for Q2 2017 increased by 9% year-over-year to $14.8 billion, and 14% excluding the divested ISecG.
- 2Operating income surged by 190% to $3.8 billion, and net income more than doubled to $2.8 billion.
- 3Diluted earnings per share (EPS) rose significantly to $0.58 from $0.27 in the prior year's quarter.
- 4Gross margin improved to 61.6% from 58.9% in Q2 2016, driven by higher platform revenue and cost efficiencies.
- 5Client Computing Group (CCG) revenue grew 12% to $8.2 billion, supported by increased platform volumes and ASPs, especially in notebooks.
- 6Data-centric businesses collectively grew 16%, with Non-Volatile Memory Solutions Group (NSG) revenue up 58% year-over-year.
- 7The company generated strong operating cash flow of $4.7 billion in Q2 2017, supporting capital expenditures, dividends, and share repurchases.