Friday, October 25th 2019
Intel Reports Third-Quarter 2019 Financial Results
Intel Corporation today reported third-quarter 2019 financial results. "We've been on a multi-year journey to reposition Intel's portfolio to take advantage of the exponential growth of data. Our third-quarter financial performance underscores our progress as our data-centric businesses turned in their best performance ever, making up almost half our total revenue in a record quarter," said Bob Swan, Intel CEO. "Our priorities are accelerating growth, improving our execution and deploying capital for attractive returns.We now expect to deliver a fourth record year in a row."
Intel today announced its board of directors has approved a $20 billion increase in its stock repurchase program authorization. In the third quarter, the company generated approximately $10.7 billion in cash from operations, paid dividends of $1.4 billion and used $4.5 billion to repurchase 92 million shares of stock. Third-quarter revenue of $19.2 billion was $1.2 billion higher than July guidance and set an all-time quarterly record,driven by record data-centric revenue, up 6 percent YoY. PC-centric revenue was in-line with expectations, down 5 percent compared to last year.
The PC-centric business (CCG) was down percent in the third quarter on lower year-on-year platform volume,partially offset by a strong mix of Intel's higher performance products as the commercial segment of the PC market remained strong. Major PC manufacturers introduced systems featuring the new, 10 nm-based 10th Gen Intel Core processors (code-named "Ice Lake"). Eighteen new Ice Lake-powered system designs have shipped to date, with a total of 30 designs expected to launch in 2019. The company also announced new 10th Gen Intel Core mobile PC processors (formerly code-named "Comet Lake") and new Intel Xeon W and X-Series processors for workstations and high-end desktops.
Collectively, Intel's data-centric businesses achieved record revenue in the third quarter, up percent YoY. The Data Center Group (DCG) delivered record revenue driven by a strong mix of high-performance Intel Xeon processors and growth in every segment of the business. The communications service provider segment grew 11 percent while the cloud segment returned to growth, up 3 percent, and enterprise and government revenue grew 1 percent. The Internet of Things Group (IOTG) also achieved record revenue, up 9 percent on strength in retail and transportation.Mobileye achieved record revenue, up 20 percent YoY on increasing ADAS adoption. Intel's memory business (NSG) also achieved record revenue, up 19 percent YoY. The Programmable Solutions Group (PSG) shipped thefirst 10 nm-based Intel Agilex FPGAs in the third quarter. PSG third-quarter revenue was up 2 percent YoY.
Business Outlook
Intel's guidance for the fourth-quarter and full-year 2019 includes both GAAP and non-GAAP estimates.Reconciliations between these GAAP and non-GAAP financial measures are included below.
Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions,divestitures, strategic investments and other significant transactions that may be completed after October 24, 2019,except for the planned divestiture of the majority of our smartphone modem business and the pending sale of Intel's interest in the IM Flash Technologies, LLC joint venture, which are both expected to close in the fourth quarter of 2019. Actual results may differ materially from Intel's Business Outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.
Intel today announced its board of directors has approved a $20 billion increase in its stock repurchase program authorization. In the third quarter, the company generated approximately $10.7 billion in cash from operations, paid dividends of $1.4 billion and used $4.5 billion to repurchase 92 million shares of stock. Third-quarter revenue of $19.2 billion was $1.2 billion higher than July guidance and set an all-time quarterly record,driven by record data-centric revenue, up 6 percent YoY. PC-centric revenue was in-line with expectations, down 5 percent compared to last year.
Collectively, Intel's data-centric businesses achieved record revenue in the third quarter, up percent YoY. The Data Center Group (DCG) delivered record revenue driven by a strong mix of high-performance Intel Xeon processors and growth in every segment of the business. The communications service provider segment grew 11 percent while the cloud segment returned to growth, up 3 percent, and enterprise and government revenue grew 1 percent. The Internet of Things Group (IOTG) also achieved record revenue, up 9 percent on strength in retail and transportation.Mobileye achieved record revenue, up 20 percent YoY on increasing ADAS adoption. Intel's memory business (NSG) also achieved record revenue, up 19 percent YoY. The Programmable Solutions Group (PSG) shipped thefirst 10 nm-based Intel Agilex FPGAs in the third quarter. PSG third-quarter revenue was up 2 percent YoY.
Business Outlook
Intel's guidance for the fourth-quarter and full-year 2019 includes both GAAP and non-GAAP estimates.Reconciliations between these GAAP and non-GAAP financial measures are included below.
24 Comments on Intel Reports Third-Quarter 2019 Financial Results
Results are very good - significantly better than expected.
Comparison to Q3 2018 is misleading, because that was one of the best quarters for Intel in the last decade.
Now with PC sales in general up and Intel PC centric business down, I wonder if this will translate to meaningful income for AMD.
Probably a lie to keep investor calm.
Do you have any evidence that Intel is lying? Or is it the fact that Intel doing extremely well financially doesn't fit with the narrative that AMD is putting them out of business?
Both revenue and earnings were higher than market expectations (and Intel's forecast from Q2).
Objectively, it was a very good quarter. But sure, it would have been even better if AMD didn't take those few % of market share.Doesn't add up to what? What you've read online about AMD's dominance and Mindfactory statistics? :)Intel is a listed company (a large one as well). It wouldn't be easy to lie and it wouldn't make any sense as well.
Companies may try to do some accounting magic with costs or taxes, but revenue is a solid and easily audited figure.
And about to get cheaper with competition over the next year or so.
Revenue will surely be higher than Q2 just based on ASP (average sales price).Well of course. Intel has a very diversified portfolio. It's not their fault AMD doesn't.
You can find detailed figures for particular divisions in the original document.
In short: Intel lost a bit in consumer segment (because of Ryzen, obviously). Everything else is up compared to Q3 2018.
But PC and datacenter divisions are still almost 85% of the whole revenue.
So no: modems and SSDs didn't cover the hypothetical huge loss in CPUs.
Intel should have been stripped of all cash and heavily fined, but they paid a pittance and will do it, again.
But I don't see why is that relevant here anyway.
Other than the tragic ATI takeover, AMD hasn't been trying to diversify their portfolio... ever.
intel has its own manufacturing but intel too has manufacturing volume issues.
Both companies could sell more if they could manufacture more.
Revenue: $1.8B (expected: $1.81B)
Earnings per share: $0.11 (expected $0.18)
And yeah... here's to all the people that suggested 2:1 sales ratio and all of that. :)
That 2:1 ratio exists. But in retail markets. In OEMs where Intel has them in it's pockets, it is still like 1:10. I mean, business still prefer insecure, full of patches Intel business PCs, than more secure AMD Pro processors. Anyway OEM market is significantly larger and it was obvious all those months that AMD was selling much more CPUs in the retail markets, but only gaining a few percentage points of market share.
Still, that 2:1 in retail markets was enough to move AMD up, while driving Intel lower.
P.S. I always think that people loving monopolies should be shareholders of that company. Or else, well, anyway, nevermind.
$0.18 expectation was for GAAP.
GAAP and Non-GAAP are different accounting standards (you calculate these figures differently).
You are comparing wrong numbers. :)Which markets? You mean some countries? Or stores?
Yes, there exist some stores when 2:1 is true. And that's it.
Figures don't add up. There's no way 2:1 is true for all "boxed" CPUs.And you are 100% sure that it's not because Intel is a better business partner? Or it's a better business to sell their CPUs?Why do you think AMD CPUs are more secure? :)
Because Intel offers more patches? How is that making any sense in your world, seriously? :)
"You are WRONG. I am RIGHT"Yeah, probably some stores at Guatemala still sell more Intel CPUs than AMD.
BTW. Any news articles about that store/country where Intel still sells more CPUs in the retail market? I can wait for you to find it.Let's say that I am a big OEM who has a multi billion/multi year, contract. That contract warranties me lower prices and be the first in line for CPUs from the factory, under the term that I will keep selling at least 90% of my systems with Intel CPUs inside. And let's say that this contract bounds me for 5-10 years. how many AMD systems can I build? We have seen this type of contracts. For example the original agreement between AMD and GF, where AMD had the obligation to keep buying wafers until 2021 I think.
Intel has used it's money and monopolistic tactics many times before. In my opinion it's a 200% sure thing. You can deny it because it's close to impossible to find proofs. If there where proofs, Intel will be facing ANOTHER fine.Intel offers more patches because it's CPUs are full of security holes. In your world a raincoat full of holes that got patched somehow, is much better against rain compared to a raincoat without holes. And yes, you are seriously on that logic bacause you where always happy to post anything that will defend Intel.
:)
Revenue figures are public. We know Intel's CPU revenue is few times higher than AMD's total.
What else do you need?You know... I really don't have time for this kind of arguments. :)
If AMD CPUs are as great as you think, their market share will explode and someone will finally bother to test them properly. And you'll quickly learn that their CPUs can be exploited as well. It's cutting edge semiconductors. They don't make this holes on purpose. CPUs are fantastically complex and shit happens.
And if AMD fails to win a lot of market, no one will give a f..., but you'll at least have the "more secure" argument to keep you warm.
So, the way I see it, you'll end up happy anyway. Cheer up.
Funny how you ask me if I need anything else, when you avoid the previous question.And here you go again, avoiding what you don't like.
What else I want? You provided everything by avoiding everything. Cheers. :)