Intel Corp. Tuesday (July 15) reported second quarter sales and earnings that beat Wall Street expectations thanks largely to record quarterly microprocessor unit shipments.
Intel (Santa Clara, Calif.) reported second quarter sales of $13.8 billion, up 8 percent from the first quarter and up 8 percent from the second quarter of 2013. The company reported a net income of $2.8 billion, or 55 cents per share, up 45 percent compared to the first quarter and up 40 percent from the second quarter of 2013.
Intel’s second quarter sales beat consensus analysts’ expectations of $13.7 billion, while net income beat consensus analysts’ expectations of about 52 cents per share, according to Yahoo Finance.
Brian Krzanich, Intel’s CEO, said through a statement that the company’s second quarter results reaffirmed the company’s strategy to expand Intel technology to the so-called Internet of Things. "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,” Krzanich said. He added that the company also expects the first systems based on its 14-nm Broadwell product line to be on store shelves during the holidays.
For the third quarter, Intel said it expects sales to increase to between $13.9 billion and $14.9 billion. For the full year 2014, Intel said it now expects sales to improve by about 5 percent compared with 2013 revenue of $52.7 billion, slightly higher than previous expectations. The company said it continues to expect to invest $10.5 billion to $11.5 billion in capital spending this year.
Intel also announced that its board of directors voted to increase its share repurchase program by $20 billion. The company is forecasting share repurchases of approximately $4 billion in the third quarter, with additional share repurchases in the fourth quarter.