The share of Intel Corp rose higher in the last minutes of trading after the chipmaker unexpectedly announced quarterly results before the end of the trading session.
Intel INTC,
the shares rose to 6.5% at $ 62.46, after the holiday sales were released, dropping the expectations that beat expectations, and the activity falling by 2% after hours. The chipmaker had a net income of $ 5.86 billion, or $ 1.42 per share, in the fourth quarter, compared to $ 6.91 billion, or $ 1.58 per share, in the previous year. After adjusting for restructuring and acquisition-related costs, Intel posted earnings of $ 1.52 per share, up from a year ago.
Revenue fell to $ 19.98 billion from $ 20.21 billion in the previous quarter. Analysts polled by FactSet estimated adjusted earnings of $ 1.11 per share on revenue at $ 17.53 billion, while Intel estimated adjusted earnings of $ 1.10 per share on earnings of approximately $ 17.4 billion predicted.
In Intel’s data center group, revenue fell 16% to $ 6.1 billion, while analysts expect $ 5.48 billion. Intel’s largest segment – customer computers, the traditional computer group – rose 9% to $ 10.9 billion, while analysts expect $ 9.57 billion.
Intel reported that the revenue of the non-volatile memory solutions fell by 1% to $ 1.2 billion, while Wall Street expects $ 1.08 billion. Internet of Things (IoT) revenue fell 16% to $ 777 million, compared to an expected $ 764.2 million. Mobileye’s revenue rose 39% to $ 333 million, while the street expected $ 234.2 million.
For the first quarter, Intel forecast adjusted revenue of $ 17.5 billion and adjusted earnings of $ 1.10 per share. Analysts, on average, expect adjusted first-quarter earnings of 93 cents per share on revenue of $ 16.08 billion.
“Demand for Intel’s computing performance remains strong and our focus on growth opportunities is bearing fruit,” said Bob Swan, Intel’s outgoing CEO.
Last week, Intel announced that Pat Gelsinger will return to the company to take over the CEO position at Swan.
Over the past 12 months, Intel shares have risen 3%, while the Dow Jones Industrial Average DJIA,
– which counts Intel as a component – 7% higher, the S&P 500 index SPX,
rises by 16%, the technically heavy Nasdaq Composite Index COMP,
is 44% higher, and the PHLX Semiconductor Index SOX,
is 64% higher.