Intel climbs on its $1 billion deal with Apple and improved 2019 forecast
- Intel rose as much as 3% on Friday after beating analyst estimates for its second-quarter earnings and detailing its $1 billion deal with Apple.
- The chipmaker will sell its smartphone modem business to Apple in a deal set to close before the end of the fourth quarter. Intel will send 2,200 employees to the tech giant.
- Intel also shifted its yearly forecast up and ahead of Wall Street's estimates. The company moved its 2019 guidance lower after its last earnings report after its data center business saw its first revenue decline in years.
- Watch Intel trade live here.
The chipmaker is selling its smartphone modem business to Apple, with the deal set to close before the end of the fourth quarter. The sale will move 2,200 employees to Apple as the iPhone manufacturer prepares to outfit its future phones with 5G compatibility.
Here are the key numbers:
Earnings per share (adjusted): $1.06, versus the $0.96 estimated
Revenue: $16.5 billion, versus the $15.7 billion estimated
2019 revenue: $69.5 billion, versus the $68.34 estimated
The earnings beat follows a disappointing first quarter for the company. Its data center business recorded its first revenue decline in years and the company shifted its yearly expectations lower after missing Wall Street estimates. Intel has shifted some of its business to chips for cloud computing and data centers as the PC market shrinks.
Intel also gained a new CEO at the start of the year. Bob Swan moved from interim to full-time CEO in late January, and told analysts the company is "transforming from a PC-centric company to a data-centric company, and our ambitions are bigger than they've ever been."
Intel shares are up roughly 12% year-to-date.
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