Intel Corp. raised its guidance for 2018 as its second-quarter profit surged year over year and beat market expectations, on the back of record revenue that was driven by its data-centric businesses.
The company's net income soared to $5.01 billion, or $1.05 per share, in the quarter that ended June 30, from $2.81 billion, or 58 cents per share, in the prior-year period.
Non-GAAP net income rose to $4.94 billion, or $1.04 per share, in the quarter, from $3.51 billion, or 72 cents per share, a year earlier.
The S&P Capital IQ consensus normalized earnings estimate for the quarter was 97 cents per share.
Intel said it posted record second-quarter revenue of $16.96 billion, up from $14.76 billion a year ago. Revenue at the company's data-centric businesses grew 26%, with the Data Center Group's revenue rising 27% to $5.55 billion.
Second-quarter revenue at the PC-centric business, the Client Computing Group, went up 6% year over year to $8.73 billion.
In the third quarter, Intel expects to post revenue of $18.1 billion, plus or minus $500 million, and EPS of $1.09, plus or minus 5 cents. Non-GAAP EPS is projected to be $1.15, plus or minus 5 cents.
Intel raised its outlook for full-year 2018 with an EPS estimate of $4.10, plus or minus 5%, and revenue of $69.5 billion, plus or minus $1 billion. On a non-GAAP basis, full-year EPS was forecast at $4.15, plus or minus 5%.