This afternoon, Intel introduced their earnings for Q1 of their 2019 fiscal 12 months. Revenue for the primary quarter got here in at $16.1 billion, which is flat in comparison with Q1 2018, however margins have been down 4% to 56.6%. Due to this, working earnings was down 7% to $4.2 billion, and internet earnings was down 11% to $4.Zero billion. Earnings-per-share for the quarter have been $0.87, down 6% from $0.93 a 12 months in the past.
| Intel Q1 2019 Financial Results (GAAP) | |||||
| Q1’2019 | This autumn’2018 | Q1’2018 | |||
| Revenue | $16.1B | $18.7B | $16.1B | ||
| Operating Income | $4.2B | $6.2B | $4.5B | ||
| Net Income | $4.0B | $5.2B | $4.5B | ||
| Gross Margin | 56.6% | 60.2% | 60.6% | ||
| Client Computing Group Revenue | $8.6B | -12% | +4% | ||
| Data Center Group Revenue | $4.9B | -20% | -6% | ||
| Internet of Things Revenue | $910M | +11% | +8% | ||
| Non-Volatile Memory Solutions Group | $915M | -17% | -12% | ||
| Programmable Solutions Group | $486M | -21% | -2% | ||
Despite a PC market that continues to battle, Intel made beneficial properties within the first quarter with their Client Computing Group. On each notebooks and desktops, Intel volumes have been down 7% and eight% respectively, however because of larger common promoting costs (ASP) Intel’s PC-centric enterprise did develop income. Notebook processor ASP was up 13% in comparison with Q1 2018, and desktop ASP was 7% larger. This elevated income for this section 4% general to $8.5 billion. Intel cites energy in gaming, bigger business, and modem for the expansion.
As we’ve already lined, Intel’s push to 10 nm has lastly began to see some beneficial properties in quantity after years of delay, and we should always lastly begin to see Ice Lake powered laptops this fall.
Intel’s Data Center group was down 6% to $4.9 billion in income this quarter. Cloud continued to develop, up 5%, nevertheless it couldn’t offset the decline in enterprise and authorities income, which was down 21% this quarter. At the top of the day, you possibly can’t have each cloud and on-prem income beneficial properties eternally, because the former is designed to eat the latter, however we’ll have to observe this over the following whereas and see if it is a one-year blip, or indicators of a bigger pattern.
Internet of Things continued its progress, with income up 8% to $910 million. What was as soon as a blip on the radar is sort of a billion greenback per quarter marketplace for Intel. MobileEye income was up 38% to $209 million, which is a report for this section.
Intel’s non-volatile storage enterprise was down 12% to $915 million, reflecting the elevated competitors in pricing of NAND.
Finally, Intel’s Programmable Solutions Group, which incorporates their Altera FPGAs, was down 2%.
Looking forward to Q2, Intel is forecasting income of roughly $15.6 billion, with an working margin of 27%, and the FY 2019 forecast is for about $69 billion in income, with an working margin of 30%.
Source: Intel Investor Relations
