Intel and Qualcomm released their latest earnings reports after closing bell tonight. Intel posted adjusted earnings of 59 cents per share on $13.5 billion in non-GAAP revenue, against the consensus estimates of 53 cents per share and $13.54 billion in revenue. In last year’s second quarter, the chip maker reported non-GAAP earnings of 62 cents per share and revenue of $13.2 billion.
Qualcomm posted adjusted earnings of $1.16 per share on $5.6 billion in sales, against the consensus of 97 cents per share and $5.58 billion. In last year’s third fiscal quarter, the chip maker reported revenue of $5.8 billion and adjusted earnings of 99 cents per share.
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Intel slumps following earnings
Intel’s GAAP earnings fell to 27 cents per share from 55 cents last year. The chip maker’s Client Computing Group recorded a 3% decline in revenue to $7.3 billion, while its Data Center Groups revenue increased 5% to $4 billion. The Internet of Things Group revenue increased 2% to $572 million, while the Non-Volatile Memory Solutions Group’s revenue plunged 20% to $554 million. The Intel Security Group segment’s revenue increased 10% from last year to $537 million, while the Programmable Solutions Group’s revenue was $465 million.
Intel’s GAAP gross margin of 58.9% beat the midpoint of expectations by 0.9 points, while its non-GAAP gross margin of 61.8% beat the midpoint by 0.8 points.
The chip maker expects its third quarter revenue to be $14.9 billion, plus or minus $500 million, which is higher than the average seasonal increase for the quarter. Intel expects its GAAP gross margin to be 60%, plus or minus “a couple of points,” representing an increase of 1.1 points from the second quarter. It projects a non-GAAP gross margin of 62%, plus or minutes a couple of points, which would be flat with the second quarter.
Shares of Intel slipped by as much as 2.86% to $34.67 in after-hours trades following tonight’s earnings report.
Qualcomm surges post-earnings
Qualcomm chipped 201 million MSM chips during its third fiscal quarter, an 11% decline from the 225 million chips it shipped last year. The company said reported device sales rose 4% to $62.6 billion, and estimated 3G/4G device shipments grew 11% to between 321 million and 325 million. The estimated average selling prices for the 3G/4G devlices declined 7% to between $191 and $197.
The chip maker expects fourth quarter revenue to be between $5.4 billion and $6.2 billion and earnings to be between $1.05 and $1.15 per share. Wall Street expects $5.7 billion in sales and $1.08 per share in earnings for the quarter.
Shares of Qualcomm surged by as much as 5.36% to $58.81 in after-hours trades following tonight’s earnings report.