The shares of Intel Corp. rose to close higher in the closing minutes of trading on Thursday after the chipmaker unexpectedly announced quarterly results ahead of the trading session.
Intel INTC,
stocks rebounded to close 6.5% at $ 62.46 after the release of holiday sales and an outlook that exceeded expectations, declining 2% in non-business hours activity. The chip maker reported fourth-quarter net profit of $ 5.86 billion, or $ 1.42 per share, compared to $ 6.91 billion or $ 1.58 per share in the same period a year ago. Adjusted for restructuring and acquisition-related costs, Intel reported earnings of $ 1.52 per share, equal to a year ago.
Sales fell from $ 20.21 billion in the same quarter a year ago to $ 19.98 billion. Analysts polled by FactSet estimated adjusted earnings of $ 1.11 per share on sales of $ 17.53 billion, while Intel estimated adjusted earnings of $ 1.10 per share on sales of approximately $ 17.4 billion had predicted.
Intel’s data center group saw revenue drop 16% to $ 6.1 billion, while analysts expected $ 5.48 billion. Intel’s largest segment – client computing, the traditional PC group – was up 9% to $ 10.9 billion, with analysts expecting $ 9.57 billion.
Intel reported that non-volatile memory solutions sales fell 1% to $ 1.2 billion, while Wall Street expected $ 1.08 billion. Internet of Things, or IoT, sales fell 16% to $ 777 million, compared to an expected $ 764.2 million. Mobileye’s revenue was up 39% to $ 333 million, while The Street had 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 expect, on average, first-quarter adjusted earnings of 93 cents a share on revenue of $ 16.08 billion.
“Demand for the computing performance Intel delivers remains very high and our focus on growth opportunities is paying off,” said Bob Swan, Intel’s outgoing CEO, in a statement.
Last week, Intel announced that Pat Gelsinger was returning to the company to take over Swan’s CEO position.
Over the past 12 months, Intel stocks are up 3%, while the Dow Jones Industrial Average DJIA,
– that Intel counts as a component – is up 7%, the S&P 500 index SPX,
is up 16%, the tech-heavy Nasdaq Composite Index COMP,
is up 44%, and the PHLX Semiconductor Index SOX,
is up 64%.