Following the closing bell today, Intel reported its first quarter results, including revenue of $12.764 billion, and earnings per share of $0.38. The results roughly match analyst expectations that the company would earn $0.37 per share on top line of $12.81 billion.
It’s worth noting that that $0.37 per share earnings expectation was the lower than at least the company’s last five quarters’ results.
In the sequentially preceding quarter, Intel had seasonally-boosted revenue of $13.83 billion, on earnings per share of $0.51. Like other members of the larger PC ecosystem, Intel benefits from the holiday sales rush.
Intel was essentially flat in regular trading, and is up just under 3% in after-hours trading. All told, the company’s PC division had revenue of $7.9 billion in the period, down 1%, while its Data Center Group had revenue of $3.1 billion, up 11% year-over-year.
Net income for Intel during the quarter totaled $1.9 billion, a 5% year-over-year decline. The company broke out two revenue categories this cycle that are worth taking a note of. They are as follows:
Revenue derived from “Internet of Things” sources: $482 million. Intel notes that this sum is “down 10 percent sequentially and up 32 percent year-over-year.” [Note: As the Wall Street Journal points out, this top line likely includes prior ‘embedded’ revenues, so don’t take this segment to mean that Internet of Things has exploded quite yet.]
Revenue from the “Mobile and Communications Group;” $156 million, which according to Intel is “down 52 percent sequentially and down 61 percent year-over-year.”
The company expects second quarter revenue of $13.0 billion, with a margin of error of $500 million either direction.
Looking broadly, the Intel results show a firming PC market, and continued weakness at the chip company to target new segments such as mobile for short-term growth.