Intel’s second quarter results came in above expectations, with the chip company reporting revenue of $13.8 billion, and earnings per share of $0.55. The street had expected Intel to earn $.52 on revenue of $13.69 billion.
Intel had previously raised its revenue expectations to $13.7 billion, with a margin of error of up to $300 million. It met that mark.
What drove the quarter for the technology giant? Metal. Its PC division saw its revenue rise 6 percent year-over-year to $8.7 billion, and its Data Center Group grew 19 percent, with top line of $3.5 billion. The company’s smaller Internet of Things group grew 24 percent year-over-year to $539 million in revenue. Its Mobile division saw its revenue decline sharply, however, falling 83 percent on a yearly basis, to a slim $51 million.
Intel had a billion dollars more in revenue in the second quarter of 2014 than it did in the second quarter of 2013. Its gross margin improved as well, to 64.5 percent, up from 58.3 percent.
For the full year, Intel expects revenue growth of 5 percent, which it states is “slightly higher” than its “prior expectations.” With net income of $2.79 billion, and cash and short-terms of nearly $8 billion, Intel appears to be in decent shape.
The company is currently working to expand its mobile chip business, in hopes of growing its share in powering tablets and smartphones, markets where its competitors have so far ruled. Its mobile results this quarter, however, including a sequential-quarter decline of 67 percent, were not strong. The company did affirm in its release that it is still on track to sell 40 million tablet processors this year.
Investors, however, appear content with the results, and have bid shares of Intel up more than 4 percent in after-hours trading.IMAGE BY Flickr USER Ed Schipul UNDER CC BY 2.0 LICENSE