Intel (NASDAQ: INTC) 2Q19 Results: Misses on Revenues but Raises Annual Guidance, Plans to Sell 5G Modem Business

Executive Summary

• Intel reported 2Q19 revenues of $16.51 billion, down 2.7% year over year and slightly below the consensus estimate. Adjusted EPS was $0.89, up 1.8% and in line with consensus.
• PC-centric revenue grew 1.3%, more than offset by data-centric revenue, which declined 6.9%. Revenue from Mobileye grew 16.2%.
• Separately, Intel announced an agreement to sell its 5G smartphone modem business to Apple for $1 billion.
• Intel raised its 2019 revenue forecast slightly by $500 million to $69.5 billion and guided for Q3 revenues and EPS above consensus estimates.