Intel Corp. (INTC), the world’s biggest chipmaker, Thursday said its profit and revenues for the fourth quarter trumped Wall Street estimates. The company’s shares gained nearly 7 percent driven by strong outlook for the first quarter and full year 2020.
Santa Clara, California-based Intel reported fourth-quarter profit of $6.9 billion or $1.58 per share, up from $5.2 billion or $1.12 per share last year.
Adjusted earnings for the quarter were $1.52 per share, up from $1.28 per share. On average, 32 analysts polled by Thomson Reuters estimated earnings of $1.25 per share for the quarter.
Intel’s revenues for the quarter were up 8% to $20.2 billion from last year’s revenue of $18.7 billion. Analysts had a consensus revenue estimate of $19.23 billion for the quarter.
CEO Bob Swan said, “In 2019, we gained share in an expanded addressable market that demands more performance to process, move and store data. One year into our long-term financial plan, we have outperformed our revenue and EPS expectations. Looking ahead, we are investing to win the technology inflections of the future, play a bigger role in the success of our customers and increase shareholder returns.”
Looking forward to the first quarter, Intel expects revenues of about $19.0 billion and adjusted earnings of around $1.30 per share. Analysts currently estimate earnings of $1.04 per share and revenues of $17.19 billion.
For the full year 2020, Intel expects revenues of about $73.5 billion and adjusted earnings of about $5.00 per share. Analysts currently estimate earnings of $4.68 per share on revenues $72.25 billion.
Earlier, the company expected revenues of about $71.5 billion and adjusted earnings of about $4.60 per share.
INTC closed Thursday’s trading at $63.32, up $0.59 or 0.94%, on the Nasdaq. The stock further gained $4.37 or 6.90% in the after-hours trading.
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