Intel (INTC 43.63, +2.28) has spiked 5.5% after beating estimates and boosting its guidance for the full year.
The technology heavyweight reported above-consensus third quarter earnings of $0.94 per share on a 2.4% year-over-year increase in revenue to $16.15 billion, which also exceeded expectations.
Gross margin declined to 63.9% from 64.8% one year ago. Operating income increased 8.0% to $5.60 billion.
The company recorded strong revenue growth at four out of its five business segments. Non-volatile memory solutions group revenue spiked 37.0% year-over-year to $891 million. Internet of Things Group revenue jumped 23.0% to $849 million and Programmable Solutions Group revenue rose 10.0% to $469 million. As for the company's two largest segments—Data Center Group revenue grew 7.0% to $4.90 billion while Client Computing Group revenue was unchanged at $8.90 billion. Average selling prices in the Client Computing Group increased 7.0% while unit volumes declined 7.0%. Average selling prices in the Data Center Group rose 2.0% while unit volumes grew 4.0%.
The Internet of Things Group has benefited from the ongoing drive to connect many new consumer electronics and appliances to the internet. So far, these efforts have been marketed as convenience-enhancing and there has been almost no discussion about the potential security vulnerabilities associated with connecting appliances and other electronics to the internet.
The Programmable Solutions Group has been supported by the race to put the first fully-autonomous vehicle on the road. The company completed its acquisition of Mobileye four months ahead of schedule.
Intel's solid third quarter puts the company on track to deliver record results for the full year. The company boosted its outlook for the full year, priming the market for earnings between $3.20 and $3.30 per share, up from previous guidance for earnings between $2.85 and $3.15 per share. The company also increased its revenue guidance, expecting sales between $61.50 billion and $62.50 billion, up from previous guidance for sales between $60.80 billion and $61.80 billion.