Intel Corporation Falls, Qualcomm, Inc. Rises Post-Earnings

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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.

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.

Intel Corporation Falls, Qualcomm, Inc. Rises Post-Earnings

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.

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