Intel announced third-quarter revenue of $16.1 billion, up 2 percent year-over-year, and GAAP income of $4.5 billion, up 34 percent year-over-year. Last year's figures included McAfee, a majority stake in that unit got sold earlier this year, if you exclude that revenue Intel saw its sales soar 6 percent year-over-year.
Wall Street looks at the adjusted figures to make apples-to-apples comparisons and there we see that Intel posted non-GAAP net income of $4.8 billion, up 25 percent year-over-year. On a per share basis this comes down to $1.01, an increase of 26 percent versus the year before.
Both the revenue and earnings per share are better than the analyst estimates, revenue was $420 million better than anticipated and EPS beat by 21 cents. Intel is also more optimistic about its full-year outlook, the company raised its 2017 target by $700 million to $62 billion, and increased its non-GAAP EPS outlook by 25 cents to $3.25.
The Client Computing Group was the weakest segment, sales of that unit were flat at $8.9 billion. Data Center Group revenue soared 7 percent to a record $4.9 billion, Internet of Things sales jumped 23 percent to a record $849 million, Non-Volatile Memory Solutions Group revenue skyrocketed 37 percent to a record $891 million and sales of the Programmable Solutions Group were up 10 percent to $469 million.
"We executed well in the third quarter with strong results across the business, and we’re on track to a record year,”
said Brian Krzanich, Intel CEO. “I’m excited about our progress and our future. Intel’s product line-up is the
strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”
“In the third quarter, we delivered record earnings, exceeded our EPS expectations, and increased our profit
expectations for the full year,” said Bob Swan, Intel CFO. “We feel great about Intel's transformation and where we
are nine months into our three year plan.”
In the third quarter, Intel saw strength across the business. The data center, Internet of Things and memory
businesses all achieved record quarterly revenue, and Intel extended its performance leadership with the launches
of 8th Gen Intel® Core™ and Intel® Xeon® Scalable processors. Intel's FPGA business, the Programmable
Solutions Group, is experiencing strong momentum, winning designs with automotive and cloud service provider
customers that advance Intel's position in artificial intelligence. The company also furthered its autonomous driving
efforts with exciting customer wins and the completion of the Mobileye* tender offer, four months earlier than