Intel Shares Jump on Earnings Beat, Upbeat Guidance
|
Version 0 of 1. Updated from 5:29 p.m. ET with conference call details Intel (INTC) reported stronger-than-expected results for the fourth quarter of 2016 after Thursday's closing bell, helped in part by growth in its data center unit. Shares of Intel were higher by 1.4% to $38.11 in after-hours trading on Thursday. Intel posted adjusted earnings of 79 cents a share, higher than analysts' estimates of 75 cents a share. Revenue came in at $16.4 billion, surpassing Wall Street's predicted $15.75 billion. The Santa Clara, CA-based company has looked to its data center unit, which provides chips for servers and data centers, as a growth engine amid slowing PC sales. For the fourth quarter, data center revenue totaled $4.67 billion, which was slightly below consensus estimates of $4.78 billion. Still, revenues were higher than the $4.3 billion recorded in the same quarter last year. Intel's client computing unit that includes PC sales saw revenues of $8.36 billion, lower than the $8.4 billion it had in the fourth quarter of 2015. The company also gave an upbeat forecast for the first quarter of fiscal 2017 and the full year. For the first quarter, Intel expects to report adjusted earnings between 60 cents and 70 cents per share, while analysts are looking for adjusted earnings of 61 cents per share. Revenue is projected to be $14.8 billion, plus or minus $500 million, which is in line with analysts' expectations for $14.52 billion. For 2017, Intel said it forecasts adjusted earnings of $2.80 per share, plus or minus 5%, and flat revenue year-over-year. Wall Street is looking for adjusted earnings of $2.80 per share and $60.8 billion in revenue. Of note: Intel CEO Brian Krzanich told analysts on a conference call that the company wants to have a "central role" in autonomous cars. Take that, Elon Musk and Tesla (TSLA) . |