Summary
Intel Corporation's second-quarter 2019 results show a slight year-over-year revenue decline to $16.5 billion, primarily driven by a 7% decrease in its data-centric businesses. This was partially offset by a 1% growth in the PC-centric business, which benefited from strong average selling prices (ASPs) and a favorable commercial segment mix. Despite the revenue dip, Intel generated substantial operating cash flow of $12.5 billion in the first six months and returned $8.4 billion to stockholders through dividends and share buybacks. The company is navigating market pressures such as cloud customers absorbing capacity and weakening demand in certain segments, while also investing in innovation, including the shipment of its 10nm-based 10th Gen Intel Core processors. The planned divestiture of the smartphone modem business signals a strategic shift towards focusing on broader 5G opportunities.
Financial Highlights
52 data points| Revenue | $16.50B |
| Cost of Revenue | $6.63B |
| Gross Profit | $9.88B |
| R&D Expenses | $3.44B |
| SG&A Expenses | $1.64B |
| Operating Expenses | $5.26B |
| Operating Income | $4.62B |
| Interest Expense | $135.00M |
| Net Income | $4.18B |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.92 |
| Shares Outstanding (Basic) | 4.47B |
| Shares Outstanding (Diluted) | 4.52B |
Key Highlights
- 1Total revenue for Q2 2019 was $16.5 billion, a decrease of 3% year-over-year.
- 2Data-centric businesses revenue declined 7% due to factors like cloud capacity absorption and NAND pricing pressure.
- 3PC-centric business revenue grew 1% driven by higher ASPs and a stronger commercial segment mix.
- 4Operating income decreased to $4.6 billion from $5.3 billion in the prior year's quarter.
- 5Diluted EPS was $0.92, down from $1.05 in Q2 2018.
- 6Generated $12.5 billion in cash flow from operations in the first six months of 2019.
- 7Returned $8.4 billion to stockholders in the first six months through dividends ($2.8 billion) and buybacks ($5.6 billion).