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Intel Corp. (INTC - Get Report) shares slipped lower Friday after the chipmaker topped analysts' estimates in its second quarter earnings report and announced the sale of most of its smartphone business to Apple Inc. (AAPL - Get Report)

Intel said earnings for the three months ending in June came in at 92 cents per share, down 12% from the same period last year but firmly ahead of the Street consensus forecast of 84 cents per share. Group revenues, Intel sale, fell 3% from last year to $16.5 billion but still topped analysts' estimates of a $15.7 billion total.

Looking into 2019, Intel said it would lift its full-year sales guidance by $500 million to $69.5 billion, and sees full-year GAAP earnings of $4.10 per share, a 5 cent improvement from its prior forecast. Third quarter revenues, Intel said, should reach $18 billion.

The second quarter was significantly stronger than we forecasted in April," CEO Bob Swan told investors on a conference call late Thursday. "Our Q2 results are proof points for the megatrends that underpin our strategy. The world's insatiable appetite for data is driving demand for solutions to process, store and move it faster and better."

"While we hope and expect trade issues to be resolved, further tightening of export restrictions would come with revenue risk to our business," he added. "As a result, we entered the second half of the year a little more cautious than we were 90 days ago."

Intel shares were marked 0.44% lower Friday at $51.93 each, after rising as much as 4.5% in the pre-market session, in a move that would trim the stock's year-to-date gain to around 11%.

Intel handily beat its own 2Q guidance, led by strength in client computing," said KeyBanc Capital Markets analyst Weston Twigg, who carries a sector weight rating for the stock. "Upside came from customers buying ahead of tariffs, strong commercial demand, and product mix. 3Q was guided well above consensus."

"However weak memory pricing remains a headwind, and enterprise demand remains very soft (down 31% y/y)," Twigg added. "The 10nm ramp remains on track, with client products ramping now."

Prior to the earnings release Apple said it would pay around $1 billion for Intel's modem business, which has been the sole provider for the tech giant's iPhones for the past year amid its ongoing legal battles with Qualcomm (QCOM - Get Report) . Around 2,200 Intel employees, as well as equipment, leases and intellectual property, will move to Cupertino following the close of the transaction later this year.