Chip giant Intel Corp. (NASDAQ: INTC – $45.78) fired on all cylinders during the September interim. Adjusted share earnings came in at $1.40, which was markedly higher than the previous year’s tally of $1.01 and an expectation of $1.15. Sales during the quarter were slightly below $19.2 billion, which represented a year-to-year increase of nearly 19% and well above consensus of $18.1 billion. The healthy top-line performance was broad-based, with almost all the company’s segments performing nicely. Intel’s PC-centric business registered record sales, thanks to performance-leading profits in the gaming and commercial segments. Intel’s Data-Center sales jumped 22%, year-over-year driven by strong demand from cloud and communications service providers that are investing to meet the explosive demand for data. The Internet of Things division also posted record September-period sales, improving 19% from last year, thanks to strong business demand. Intel’s Programmable Solutions Group registered a 6% top-line increase, with strength in data center business and healthy organic growth. Finally, Mobileye, the company’s potentially lucrative autonomous car industry business, inked record quarterly sales of $191 million, a 50%. On the conference call, the only negative comments were that management believes it will be another year before its 10-nanomenter chip rolls out and margins will likely take a hit.
Looking forward, Intel see sales for the fourth quarter to be $19 billion, plus or minus $500 million and adjusted share net is likely to be $1.22. For the full year, the top line is expected to top $71 billion, while earnings per share should clock in at more than $4.50. These shares have ample room to run based on long-term projections and pays a handsome dividend of $1.20 per share yielding 2.7%.