Intel Corp.’s stock rallied to close higher in the last minutes of trading Thursday after the chip maker unexpectedly released quarterly results before the end of the trading session.
shares rallied to close up 6.5% at $62.46 after releasing holiday sales and an outlook that beat expectations, and slipped 2% in after-hours activity. The chip maker reported fourth-quarter net income of $5.86 billion, or $1.42 a share, compared with $6.91 billion, or $1.58 a share, in the year-ago period. After adjusting for restructuring and acquisition-related costs, Intel reported earnings of $1.52 a share, flat from a year ago.
Revenue fell to $19.98 billion from $20.21 billion in the year-ago quarter. Analysts surveyed by FactSet had estimated adjusted earnings of $1.11 a share on revenue of $17.53 billion, while Intel had forecast adjusted earnings of $1.10 a share on revenue of approximately $17.4 billion.
Intel’s data-center group saw revenue decline 16% to $6.1 billion, while analysts expected $5.48 billion. Intel’s largest segment — client-computing, the traditional PC group — rose 9% to $10.9 billion with analysts expecting $9.57 billion.
Intel reported that nonvolatile memory solutions revenue declined 1% to $1.2 billion, while Wall Street expected $1.08 billion. “Internet of Things,” or IoT, revenue declined 16% to $777 million, compared with an expected $764.2 million. Mobileye revenue rose 39% to $333 million, while the Street had expected $234.2 million.
For the first quarter, Intel forecast adjusted revenue of $17.5 billion and adjusted earnings of $1.10 a share. Analysts on average expect first-quarter adjusted earnings of 93 cents a share on revenue of $16.08 billion.
“Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off,” said Bob Swan, Intel’s outgoing chief executive, in a statement.
Last week, Intel announced that Pat Gelsinger was returning to the company to take over the CEO position from Swan.
Over the past 12 months, Intel shares have gained 3%, while the Dow Jones Industrial Average
— which counts Intel as a component — is up 7%, the S&P 500 index
is up 16%, the tech-heavy Nasdaq Composite Index
is up 44%, and the PHLX Semiconductor Index
is up 64%.
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