Intel shares up 8% following earnings beat

Intel just released its second quarter earnings.

Here's the score:

EPS: $0.55 vs. $0.50 expected.

Revenue: $13.2 billion vs. $13.04 billion expected.

That's an overall beat. Intel shares are up more than 7% after hours.

But compared to the same qurater of last year, Intel's revenue was down 5%, while its net income slipped 3%.

Its gross margin also dropped two percentage points to 62.5% year-over-year.

Intel's Client Computing Group, the newly formed entity after combining its PC and mobile divisions last quarter, had $7.5 billion in revenue, down 14% from the second quarter of last year.

But its other businesses, mainly Data Center Group and Internet of Things Group, saw big jumps in sales, leading to an earnings beat. The Data Ceneter Group's revenue was up 10% year-over-year, at $3.9 billion, while the IoT Group had $559 million in revenue, up 5% from last year.

The Data Center Group remains the most profitable group with $1.8 billion in operating profits, followed by the Client Computing Group, which had $1.6 billion in operating profit.

"Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT accounted for more than 70 percent of our operating profit and helped offset a challenging PC market," said Intel CEO Brian Krzanich.

Intel gave mid-point revenue guidance of $14.3 billion and gross margins of 63% for the third quarter.