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Intel Reports Fourth-Quarter and Full-Year 2018 Financial Results

crazyeyesreaper

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Intel Corporation today reported fourth-quarter and full-year 2018 financial results. The company also announced that its board of directors has approved a five percent increase in its cash dividend to $1.26 per-share on an annual basis. The board declared a quarterly dividend of $0.315 per-share on the company's common stock, which will be payable on March 1 to shareholders of record on February 7.

"2018 was a truly remarkable year for Intel with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever," said Bob Swan, Intel CFO and Interim CEO. "In the fourth quarter, we grew revenue, expanded earnings and previewed new 10nm-based products that position Intel to compete and win going forward. Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products."


In the fourth quarter, the company generated approximately $6.9 billion in cash from operations, paid dividends of $1.4 billion and used $2.3 billion to repurchase 51 million shares of stock.

For the full year, the company generated a record $29.4 billion cash from operations, paid dividends of $5.5 billion and used $10.7 billion to repurchase 217 million shares of stock.

In the fourth quarter, Intel achieved revenue growth in nearly every business segment, and in 2018 every segment of the business set new annual all-time revenue records.


The PC-centric business (CCG) was up 10 percent in the fourth quarter due to continued strong demand for Intel's higher performance products and strength in commercial and gaming. CCG expanded its product portfolio for 2019 with the recent launch of new 9th Gen Intel Core processors and unveiled "Ice Lake" the upcoming, 10nm-based PC processor, which is expected to be in OEM systems on shelves for holiday, 2019.

Collectively, Intel's data-centric businesses grew 9 percent YoY in the quarter and 20 percent YoY in 2018. In the fourth quarter, DCG achieved 24 percent cloud segment growth and 12 percent communications service provider segment growth while enterprise revenue declined 5 percent. Intel recently announced that the new "Cascade Lake" family of high performance Intel Xeon processors with advanced AI and memory capabilities is now shipping.

Fourth-quarter Internet of Things Group (IOTG) revenue declined 7 percent YoY. However, excluding Wind River, which Intel divested in the second quarter, fourth-quarter IOTG revenue was up 4 percent YoY despite supply tightness. Record quarterly revenue in Intel's memory business (NSG) was up 25 percent YoY. Intel's Programmable Solutions Group (PSG) also achieved record quarterly revenue, up 8 percent YoY driven by strength in the data center and communications market segments.


Mobileye fourth-quarter revenue of $183 million was up 43 percent YoY as customer momentum continued. In 2018, Mobileye achieved 28 new design wins and 78 vehicle model launches.


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So far looks like the price hikes are working well for Intel, not surprising.
 
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How in the world are they doing this. Just by inertia?
Margins are down but despite some areas like PC shipments and Government in Data Center they are posting record OpIncome and Revenues.
NSG is clearly going beyond analyst expectations.

So far looks like the price hikes are working well for Intel, not surprising.
With margins going down ever so slightly I would say price hikes in consumer space are fairly irrelevant in big picture.
 
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How in the world are they doing this. Just by inertia?
Margins are down but despite some areas like PC shipments and Government in Data Center they are posting record OpIncome and Revenues.
NSG is clearly going beyond analyst expectations.

With margins going down ever so slightly I would say price hikes in consumer space are fairly irrelevant in big picture.
Margins are up in PCG, down in DCG (use discount code EPYC) but more importantly ASP is up. There's also many enthusiasts who were just waiting for more cores, lots of them prefer Intel.
 
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i7 8700K for 499 usd (newegg)
i7 9700K for 549 usd
yeah of course they are making tons of money
 
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They dominate the laptop market. Laptops sell more than anything. Use your brain, we are not in 2001 anymore. People still think that the market is all about desktop parts.
 
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I suppose, next x990K for 115x platform will cost something like 1500$, because “pc market dwindels, but every single pc rises in price”.

Nothing personal, just business. And we dont care if you cant afford our artificial inflation, we still count on crowd givin us more n more money! And stop telling everyone how is it ridiculous - because!....We don’t care! Intel(c)

i7 8700K for 499 usd (newegg)
i7 9700K for 549 usd
yeah of course they are making tons of money
Its even funnier to see how people suggest givin 600$ and more for 9900K like it is OK for 115x cpu, and it was always like that,
While 3 years ago giving that much money for cpu only meant everybody would think “that motherf* completely nuts” of you, or you’ve gone for HEDT and you had serious reason for that.
 
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Revenue up 8 billion or 13%. Net income up 4.7 billion or 28%. R&D not even picking up or showing concern. Still need more from AMD; nothing they are doing is even slowing Intel to force price reduction and competition.
 

TheLostSwede

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And investors were clearly disappointed, as their shares dropped ~$3.5...
I wish the stock market would be banned at times.
 
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Apparently their so-called "CPU shotage" has had very little to no impact on their bottom lines, or did their CEO just quietly "donate" a few billion $$ from his bonus checks to the back-door revenue stream, so that wall street would be impressed and continue backing them no questions asked....
 
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This tells all me the Intel's market could easily take higher prices and margins. This is a corporation leaving money on the table which could increase profits.

As an investor I'd be furious when I see this. Intel also needs to take business notes from Apple & nvidia on product pricing.
 
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