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Intel sign in front of the entrance to the offices and museum in Silicon Valley
Andreistanescu / Dreamstime
Strong sales of his personal computer chips and his autonomous management unit Mobileye helped
Intel
ends a difficult 2020 on a high note.
The Silicon Valley chipmaker said sales in the fourth quarter fell to $ 19.98 from $ 20.21 billion in the previous year. Sales of personal computers rose 9% to $ 10.9 billion, and the company said it had sold a record number of chips for chips. Analysts have forecast $ 9.57 billion in computer sales.
Mobileye stood out, with revenue of about 50% to $ 333 million. “Mobileye is on its way to a multi-billion dollar annualized venture, a real achievement,” said Patrick Moorhead of Moor Insights and Strategy.
Intel (ticker: INTC) recorded a total net income of the fourth quarter of $ 5.9 billion, which is $ 1.42 per share, compared to a profit of $ 6.9 billion, or $ 1.58 in the previous quarter. Adjusted for restructuring and acquisition costs, earnings were $ 1.52 per share.
The results are better than Intel’s own fourth-quarter sales forecasts and exceed consensus estimates, allowing outgoing CEO Bob Swan to leave the company on a high note.
Intel shares rose in the last minutes of trading on Thursday, rising 6.5% to $ 62.46, after Intel unexpectedly announced its results about seven minutes before the end of trading.
“We significantly exceeded our expectations for the quarter and achieved our fifth consecutive record year,” Swan said. “Demand for Intel’s computer performance remains strong and our focus on growth opportunities is bearing fruit.”
Wall Street expected sales of Intel’s chip centers to drop nearly 25% in the fourth quarter, but the company reported sales of $ 6.1 billion, a 16% drop from the previous year .
Intel gives investors another reason to rejoice, announcing that it will increase its 2021 dividend by 5%.
Amid the shortage of chips around the world hampering the production of goods, ranging from video game consoles and cars, Intel has issued optimistic guidance for the first quarter.
The company said it expects non-GAAP earnings of $ 1.10 per share on adjusted income of $ 17.5 billion. The adjusted revenue figure does not exclude the $ 1.1 billion memory sales as the company sold the unit to Sk Hynix at the end of 2020.
Swan will be replaced on February 15 by VMware CEO Pat Gelsinger.
Gelsinger said during the conference late Thursday that the company is likely to house the majority of its 2023 chips, but said: “we are likely to expand the use of external foundries for certain technologies and products.” The new CEO has promised a further update as soon as he officially joins the company next month.
Intel stock has risen 3.2% over the past year, while the PHLX Semiconductor index has risen 64%. The
S&P 500
has risen by 16% in the past year.
Write to Max A. Cherney by [email protected]