Intel [NASDAQ: INTC] reported 2Q 2011 earnings today with record revenue of $13.0B up $2.3B and 21% over the same period a year ago. This is also up from $12.85B in 1Q 2011, representing an increase of 2%. On the $13B in revenue, Intel reported profits of $3.2B which is up $3.16B the previous quarter and up 10% from Q2 2010 at $2.89B. Looking at non-GAAP numbers we can see that Intel beat Wall street?s estimates by reporting an EPS of $0.59 on $13.1B of revenue beating the expectations of $12.8B and an EPS of $0.51.
Intel reports that they saw double digit revenue growth year over year in all of their business segments, but they really haven?t seen that necessarily in profits. They also saw $1B in revenue from their acquisitions of McAfee and Infineon Wireless Solutions. But when comparing their numbers to their previous quarter, Intel?s picture isn?t nearly as rosy. They saw revenue grow 1% over 1Q 2011 with operating income down 5% and profit down 7%. They also saw EPS drop 4%. So, looking at Intel sequentially isn?t nearly as a bullish of a picture as comparing it to 2010 when we were in a recession.
Intel saw their PC Group revenue grow 11% year over year and 15% year over year in their Data Center Group. They also saw their Intel Architecture Group revenue grow by 84% which also saw embedded grow 25%. They did, though, see their sales of the Intel Atom processors at $352M down 15% year over year. This may be further lowered in future quarters as we see more and more ARM designs and Intel phasing out the use of Atom in Google?s Chrome books towards Intel Core processors instead. Granted, Chrome books are not necessarily a huge percentage, but they appear to show the trend of computing and what OEMs and consumers want. They also reported that their ASP was basically flat both sequentially and year over year. Intel also used $2.0B in repurchasing 93M shares of common stock. Furthermore, Intel reported gross margin of 61% which was in line with Intel expected to achieve.
For 3Q 2011, Intel expects their revenue to be between $13.5B and $14.5B. Analyst consensus gathered by Thomson Reuters estimated $13.5B. They expect non-GAAP to be between $13.6 and $14.6B they also expect their gross margin to increase to 64% plus or minus a few percentage points up from 61% this quarter. They also expect non-GAAP gross margin to increase to 65% plus or minus a few percentage points.
Currently, Intel closed down $0.07 or 0.4% at $22.99. In after hours trading, INTC is down $0.34 or 1.48% at $22.65.