Intel Corporation Soars as Diversified Strategy Delivers Q2 Earnings Surprise

Intel CEO Brian Krzanich's strategy delivered an earnings surprise in the second quarter. Source: Intel.

Intel (NASDAQ: INTC  ) just reported results for the second quarter of 2014. Encouraged by the report, Intel investors lifted the stock more than 4% in after-hours trading, setting new multi-year highs in the process.

The semiconductor titan saw sales rise 8% year over year to $13.8 billion. GAAP earnings rose 41% to $0.55 per diluted share.

The reported revenue fell in the upper half of Intel's updated guidance range. 64.5% gross margins were a 4.9 point sequential increase and 6.2 points year-over-year, and also exceeded the midpoint of Intel's mid-quarter guidance update.

The results also topped analyst estimates on both the top and bottom lines.

Although the data center group showed the strongest growth among Intel's divisions with a 19% year-over-year revenue boost, management pointed to a successful strategy of reaching into new markets.

"With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal," said Intel CEO Brian Krzanich in a prepared statement.

The company collected $5.5 billion in cash from operations. Free cash flows rose 35% year-over-year to $2.7 billion.

Management resolved to return more cash to shareholders, but did not promise any dividend increases today. Instead, Intel will continue to execute a generous share buyback program, which retired $2 billion worth of shares in the second quarter. This should double to $4 billion in the third quarter, rising share prices notwithstanding.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3030216, ~/Articles/ArticleHandler.aspx, 11/26/2014 3:31:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement