Intel Anticipates Sluggish Sales Growth In 2019

Intel Corp.

Intel Corp. (NASDAQ: INTC)

Intel Corp. reported upbeat earnings after markets closed on Thursday, though the chipmaker came up light on sales. The company also projected slower revenue growth for this year, sending its shares down 7% in the post-market session.

Intel stock ended the regular session at $49.76 after a gain of $1.82, or 3.80%. The stock has rallied 6% in 2019. Over the past year, the shares have run up nearly 10 percent, while the S&P 500 has declined more than 7%.

INTC Earnings & Outlook

Intel posted fourth-quarter earnings of $5.2 billion, or $1.12 per share, up from a loss of $687 million, or $0.15 per share, in the same period last year. Excluding certain items, the company earned $1.28 per share for the quarter, while analysts surveyed by Refinitiv had called for adjusted earnings of $1.22 per share.

Revenue jumped 9% from $17.05 billion to 18.66 billion, while analysts polled by Refinitiv expected revenue of $19.01 billion. Looking ahead, the company expects revenue of about $16 billion and adjusted earnings of $0.87 per share for its first quarter. Intel also views revenue of nearly $71.5 billion and adjusted earnings of $4.60 per share for the full year.

Meanwhile, analysts project revenue of $17.29 billion and adjusted earnings of $1 per share for the first quarter. For the full year, Wall Street expects the firm to post revenue of $73.11 billion and adjusted earnings of $4.51 per share for the year.

Intel CEO Comments

“I’m excited about our progress and our future. Intel’s product lineup is the strongest it has ever been, with innovation on the way for artificial intelligence, autonomous driving, and more,” commented Brian Krzanich, Intel Chief Executive Officer.

“We had an outstanding year – our revenue was stronger, our operating margins were higher, and our spending was lower. This shows Intel’s transformation is on track,” said Bob Swan, Interim Chief Financial Officer.

Intel Corp. Profile

Intel Corp. engages in the design, manufacture, and sale of computer products and technologies. It delivers computer, networking, data storage and communications platforms. It operates its business through the following segments: Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions, and All Other.

The Client Computing Group segment consists of platforms designed for notebooks, desktops, tablets, phones, wireless and wired connectivity products. The Data Center Group segment includes workload-optimized platforms and related products designed for enterprise, cloud, and communication infrastructure market.

The Internet of Things Group segment comprises of platforms such as retail, transportation, industrial, video, buildings and smart cities. The Non-Volatile Memory Solutions Group segment constitutes of NAND flash memory products primarily used in solid-state drives. The Programmable Solutions Group segment contains programmable semiconductors and related products for a broad range of markets.

The All Other segment consists of results from other non-reportable segment and corporate-related charges. The company was founded by Robert Norton Noyce and Gordon Earle Moore on July 18, 1968 and is headquartered in Santa Clara, CA. – CNN Money