Intel (INTC 35.40, +0.43) has added 1.2% in pre-market after beating second quarter expectations and boosting its guidance for the full year.
The standard-bearing chipmaker reported above-consensus second quarter earnings of $0.72 per share on a 9.1% year-over-year increase in revenue to $14.76 billion, which also exceeded estimates.
Intel's revenue represented a record for the second quarter. Adjusted for the Intel Security Group transaction, second quarter revenue was up 14.0% year-over-year.
During the second quarter, Intel launched a new line of X-series processors aimed at peak performance gaming and virtual reality applications. The company also launched Xeon scalable processors for data center customers.
Gross margin improved to 63.0% from 61.8% one year ago while R&D and MG&A expenses were little changed at $5.10 billion.
The company recorded revenue growth across its largest segments. Client Computing Group revenue grew 12.0% year-over-year to $8.20 billion, Data Center Group revenue grew 9.0% to $4.40 billion, and Internet of Things Group revenue jumped 26.0% to $720.00 million. Non-Volatile Memory Solutions Group revenue spiked 58.0% to $874 million while Programmable Solutions Group was the only segment to record a decline in revenue, as sales fell 5.0% to $440 million.
Looking ahead, the company expects that third quarter earnings will be between $0.75 per share and $0.85 per share while third quarter revenue is expected between $15.20 billion and $16.20 billion.
For the full year, Intel has raised its earnings guidance range by $0.15, expecting earnings between $2.85 per share and $3.15 per share. Revenue guidance was increased by $1.30 billion to a range of $60.80 billion to $61.80 billion. Intel's updated guidance is ahead of current market expectations.