Intel Corp stock rallied, closing higher in the final minutes of trading on Thursday after the chip maker unexpectedly released quarterly results ahead of the end of the trading session.
Shares rose, closing 6.5% higher at $ 62.46 after the holiday sales announcement and expectations exceeded expectations, and a 2% decline in after-hours activity. The chipmaker reported a fourth-quarter net income of $ 5.86 billion, or $ 1.42 per share, compared to $ 6.91 billion, or $ 1.58 per share, in the same period last year. After adjusting for restructuring and acquisition-related costs, Intel reported earnings of $ 1.52 per share, flat compared to last year.
Revenue decreased to $ 19.98 billion from $ 20.21 billion in the same quarter last year. Analysts surveyed by FactSet estimated adjusted earnings of $ 1.11 per share from revenue of $ 17.53 billion, while Intel forecast adjusted earnings of $ 1.10 per share in revenue of $ 17.4 billion.
Intel’s group of data centers saw revenue drop 16% to $ 6.1 billion, while analysts expected $ 5.48 billion. Intel’s largest segment – customer computing, the traditional PC suite – rose 9% to $ 10.9 billion, with analysts forecasting $ 9.57 billion.
Intel reported that revenue from non-volatile memory solutions fell 1% to $ 1.2 billion, while Wall Street expected $ 1.08 billion. Internet of Things, or IoT, revenue decreased 16% to $ 777 million, compared to the $ 764.2 million expected. Mobileye’s revenue increased 39% to $ 333 million, while The Street expected $ 234.2 million.
For the first quarter, Intel expected adjusted revenue of $ 17.5 billion and adjusted earnings of $ 1.10 per share. Analysts are expecting on average a first-quarter adjusted earnings of 93 cents a share, out of $ 16.08 billion in revenue.
“Demand for Intel’s computing performance remains extremely strong, and our focus on growth opportunities is paying off,” said Bob Swan, outgoing chief executive of Intel, in a statement.
Last week, Intel announced this Pat Gelsinger was returning To the company to take over the CEO position from Swan.
Over the past twelve months, Intel shares are up 3%, while the Dow Jones Industrial Average, the DJIA, has risen
– which counts Intel as a component – up 7%, the S&P 500 SPX,
Up 16%, the high-tech Nasdaq composite index,
Up 44%, PHLX Semiconductor SOX,