Intel Corporation 2nd Quarter 2022 Results Out - Beats Analyst Expectations, Posts Earnings Per Share of 59 Cents

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Keeping on a historic trend, and against all odds, Intel (NASDAQ: INTC) has managed to beat analyst expectations once more. The company has faced some instances of failing revenue this year just managed to maintain its margins and increment profitability allowing it to beat analysts consensus of 55 cents per share earnings (Not-GAAP). Clocking in at a Not GAAP earnings per share of 59 cents and GAAP EPS of 27 Cents.

Intel (NASDAQ: INTC) counting on information center strength and net of things to offset PC market uncertainty

Due to the 1-off restructuring charges included in the GAAP earnings, there is a loftier variation in the reported Not-GAAP and GAAP results (restructuring costs are not recognized under IFRS). Even though the company was able to beat Wall Street expectations, the reject in acquirement can be seen every bit worrisome for some investors. The company generated $3.8 Billion in cash from operations, paid out dividends of $i.2 Billion and used $804 meg to repurchase 26 Million shares of stock.

"2d-quarter revenue matched our outlook and profitability was ameliorate than we expected," said Brian Krzanich, Intel (NASDAQ: INTC) CEO. "In addition, our restructuring initiative to accelerate Intel's transformation is solidly on-track. We're gaining momentum heading into the second one-half. While we remain cautious on the PC market, nosotros're forecasting growth in 2022 congenital on force in information center, the Internet of Things and programmable solutions."

Intel has been battling with the laws of physics. It's becoming harder and harder to shrink nodes. 14nm was hard. 10nm volition be even harder. It has been mentioned in the earnings phone call that the company has begun work on its 10nm procedure (which is a cost driver for Q3) as well as started shipping Kaby Lake. Demand is at present starting to concentrate on the higher finish side of things as the primary market becomes enthusiast in nature with the depression terminate moving towards the mobile side.

Intel (NASDAQ: INTC) finally dropped its aggressive tick tock schema and fell back to a more than economically sensible tick-tock-tock strategy. This will allow it to milk a process node one more than time with relatively low toll. Intel has also begun unification of all its processor brands.

Financial Highlights

• Acquirement of $xiii.5 billion, upwardly 3 percent twelvemonth-over- year and consistent with outlook
• GAAP gross margin of 58.ix percent and non-GAAP gross margin of 61.8 percent exceeded outlook past almost a signal
• Generated approximately $3.8 billion in cash from operations, repurchased $804 million in stock, paid $1.ii billion in dividends with a electric current yield of about 3 pct^^
• Restructuring initiative solidly on-runway, accelerating Intel's transformation to a company powering the cloud and billions of smart, connected devices

Central Highlights

• Customer Calculating Group revenue of $vii.iii billion, downward iii percentage sequentially and down 3 pct year-over- year
• Information Center Group acquirement of $four.0 billion, up 1 percent sequentially and upward 5 percent twelvemonth-overyear
• Internet of Things Group acquirement of $572 million, downwardly 12 percent sequentially and upward 2 pct yr-over- twelvemonth
• Non-Volatile Retentiveness Solutions Group acquirement of $554 1000000, down 1 percent sequentially and downward 20 percent year-over- yr
• Intel Security Grouping revenue of $537 million, apartment sequentially and upwardly 10 percent year-over- twelvemonth
• Programmable Solutions Group revenue of $465 million, upward xxx percent sequentially. Note the comparable period did not include $99 million of acquirement as a result of conquering-related adjustments.

Business Outlook for Q3 2022

According to the guidance given in the CFO commentary, Intel Corporation  (NASDAQ: INTC) will be generating a revenue of $14.ix Billion (± 500 Million) with a gross margin of lx%. Intel'south gross profit will be approximately $8.ix Billion with R&D and MG&A related costs amounting to $5.i Billion (down from $v.two Billion this quarter). Gains from investments and disinterestedness volition be a net loss of $75 Meg (down from a net gain of $352 One thousand thousand this quarter). Depreciation volition remain apartment at $one.5 Billion. Amortization of conquering related intangibles will be $90 1000000 (GAAP only). The acquisition of Altera was completed in early 2022 and the visitor will be paying (primarily) not greenbacks charges for the same this twelvemonth. According to our ain calculations Intel's guidance points towards a (GAAP Basic) EPS of 36 Cents (± v Cents).

GAAP	Q2 2022	Q2 2022	Q1 2022
Revenue	$13.5 billion	$xiii.2 billion	$13.seven billion
Gross Margin	58.90%	62.50%	59.30%
R&D and MG&A	$5.2 billion	$5.0 billion	$v.v billion
Operating Income	$ane.3 billion	$2.ix billion	$ii.6 billion
Tax Rate	20.40%	9.30%	18.40%
Net Income	$one.iii billion	$2.7 billion	$two.0 billion
Earnings Per Share	27 cents	55 cents	42 cents

Not-GAAP	Q2 2022	Q2 2022	Q1 2022
Revenue	$xiii.five billion	$thirteen.two billion	$13.8 billion
Gross Margin	61.fourscore%	63.10%	62.70%
R&D and MG&A	$v.ii billion	$5.0 billion	$5.4 billion
Operating Income	$iii.2 billion	$iii.3 billion	$3.three billion
Net Income	$2.ix billion	$3.1 billion	$2.half-dozen billion
Earnings Per Share	59 cents	62 cents	54 cents

Source: https://wccftech.com/intel-corporation-2nd-quarter-2016-results-beats-analyst-expectations-posts-earnings-share-59-cents/

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