Intel's third-quarter 2018 earnings are out. The company had a smashing quarter, bringing in $19.2 billion in revenue for a 19% year-on-year increase. On that haul, the company made $7.3 billion in operating income, up 43% on the year. Net income was $6.4 billion, up 42% from this time a year ago. Gross margin was 64.5%, up 2.2 percentage points. Earnings per share were $1.38, up 47% on the year.
|Q3 2018||Q3 2017||Change|
|Revenue||$19.2 billion||$16.1 billion||up 19%|
|Operating income||$7.3 billion||$5.1 billion||up 43%|
|Net income||$6.4 billion||$4.5 billion||up 42%|
|Gross margin||64.5%||62.3%||up 2.2 pp|
|Earnings per share||$1.38||$0.94||up 47%|
The blue team reported record quarterly revenue across all of its divisions. The Client Computing Group brought in $10.2 billion in revenue, up 16% on the year, and made $4.5 billion in operating income, up 26% from a year ago. Platform revenues (a measure of processor and motherboard sales) were up 11% on the year, while revenue from modems, connected home products, wireless communications, and wired connectivity grew a whopping 66% on the year.
Notebook platform revenues were up 13% on the year, while desktop platform revenues grew 9%. The company said commercial and gaming PC sales were to thank for that growth. PC platform volumes grew 6%, while notebook platform average selling prices rose 4% and desktop platform average selling prices rose 10% from the year-ago period.
The Data Center Group brought in $6.1 billion in revenue, up 26% from a year ago, while operating incomes for the division grew 37% to $3.1 billion. Data center platform revenues grew 27% from a year ago, while data-center adjacency revenue grew 14% from this time last year. Cloud service provider revenue grew 50% and communication service provider revenue grew 30% on the year, while sales to government customers were flat at 1% growth from a year ago. Data-center platform unit volumes were up 15% from a year ago, and data-center platform average selling prices were up 10% for the period.
Results were similarly rosy in Intel's other business units. The Internet of Things Group and the Mobileye division, in tandem, brought in $1.11 billion in revenue and $373 million in operating income. Revenue was up 19% year-on-year, and operating income more than doubled by 101%. The Non-volatile Solutions Group brought in $1.081 billion in revenue, up 21% year-over-year, and the division brought in $160 million in operating profit, compared to a $52 million loss a year ago. Finally, the Programmable Solutions Group took in $496 million in revenue, up 6% year-over-year, while operating income declined slightly to $106 million from $113 million a year ago.
For the fourth quarter of 2018, Intel expects revenue of approximately $19 billion, an operating margin of 33%, and earnings per share of $1.16. For reference, Intel brought in $17.1 billion in revenue in the fourth quarter of 2017. For its full-year 2018 outlook, Intel expects revenue of $71.2 billion, operating margin of 33%, and earnings per share of $4.52. For perspective, in the full year of its fiscal 2017, Intel brought in $62.8 billion in revenue.