Intel Corp. shares rose to close higher in the closing minutes of Thursday’s trading session after the chip maker unexpectedly released quarterly results before the trading session ended.
Intel INTC,
stocks rose to close 6.5% at $ 62.46 after the launch of year-end sales and a prospect that exceeded expectations, and fell 2% in after-hours activity. The chip maker reported fourth quarter net income of $ 5.86 billion, or $ 1.42 per share, compared to $ 6.91 billion, or $ 1.58 per share, in the same period. last year. After adjusting the restructuring and acquisition costs, Intel reported a profit of $ 1.52 per share, stable compared to the previous year.
Revenue fell to $ 19.98 billion, from $ 20.21 billion in the same quarter last year. Analysts polled by FactSet estimated adjusted earnings of $ 1.11 per share on revenue of $ 17.53 billion, while Intel predicted adjusted earnings of $ 1.10 per share on revenue of approximately $ 17.4 billion.
Intel’s data center group saw revenue drop 16% to $ 6.1 billion, while analysts expected $ 5.48 billion. Intel’s largest segment – customer computing, the traditional PC group – grew 9% to $ 10.9 billion, with analysts expecting $ 9.57 billion.
Intel reported that revenue from non-volatile memory solutions fell 1% to $ 1.2 billion, while Wall Street expected $ 1.08 billion. “Internet of Things” or IoT revenue fell 16%, to $ 777 million, compared to an expectation of $ 764.2 million. Mobileye’s revenue grew 39% to $ 333 million, while Street expected $ 234.2 million.
For the first quarter, Intel predicted adjusted revenue of $ 17.5 billion and adjusted earnings of $ 1.10 per share. Analysts, on average, expect adjusted earnings in the first quarter of 93 cents per share and revenue of $ 16.08 billion.
“The demand for the computing performance that Intel offers remains very strong and our focus on growth opportunities is paying off,” said Bob Swan, Intel’s chief executive, in a statement.
Last week, Intel announced that Pat Gelsinger was returning to the company to take over as Swan’s CEO.
In the past 12 months, Intel shares have gained 3%, while the Dow Jones Industrial Average DJIA,
– which relies on Intel as a component – increased the S&P 500 SPX index by 7%,
rose 16%, the high-tech Nasdaq Composite index,
increased by 44%, and the PHLX SOX semiconductor index,
increased by 64%.