Summary
Intel Corporation's Q3 2019 earnings report shows flat revenue of $19.2 billion, mirroring the previous year's performance. This stability was achieved through a divergence in segment performance: the data-centric businesses grew by 6%, driven by strong performance in the Data Center Group (DCG) and other data-focused units like Non-Volatile Memory Solutions Group (NSG), Internet of Things Group (IOTG), and Mobileye. Conversely, the PC-centric business experienced a 5% decline, primarily due to lower platform unit volumes, though this was partially offset by a stronger mix of higher-performance products. Despite flat top-line revenue, gross margins saw a decline of $1.1 billion year-over-year, impacted by lower platform unit sales and margin compression in memory products. However, operating income remained relatively stable, with GAAP diluted EPS at $1.35 compared to $1.38 in the prior year's quarter. The company continued its commitment to shareholder returns, generating $23.3 billion in operating cash flow for the first nine months and returning $14.3 billion to stockholders through dividends and substantial share buybacks. Intel also announced the planned divestiture of its smartphone modem business to further focus on 5G infrastructure and edge computing opportunities.
Financial Highlights
53 data points| Revenue | $19.19B |
| Cost of Revenue | $7.89B |
| Gross Profit | $11.29B |
| R&D Expenses | $3.21B |
| SG&A Expenses | $1.54B |
| Operating Expenses | $4.85B |
| Operating Income | $6.45B |
| Interest Expense | $107.00M |
| Net Income | $5.99B |
| EPS (Basic) | $1.36 |
| EPS (Diluted) | $1.35 |
| Shares Outstanding (Basic) | 4.39B |
| Shares Outstanding (Diluted) | 4.43B |
Key Highlights
- 1Total revenue for Q3 2019 was $19.2 billion, flat compared to Q3 2018.
- 2Data-centric businesses grew 6% year-over-year, while the PC-centric business declined by 5%.
- 3Gross margin decreased by $1.1 billion year-over-year, impacted by lower platform unit sales and memory product margin compression.
- 4GAAP diluted Earnings Per Share (EPS) was $1.35, a slight decrease from $1.38 in Q3 2018.
- 5The company generated $23.3 billion in cash flow from operations for the first nine months of 2019.
- 6Intel returned $14.3 billion to stockholders in the first nine months, including $4.2 billion in dividends and $10.1 billion in share buybacks.
- 7Intel signed an agreement to divest the majority of its smartphone modem business, expected to close in Q4 2019.