Chipmaker Intel (INTC) defeated Wall Street's fourth-quarter target late Thursday, but posted a slight increase in sales. Intel shares fell in extended trading as their predictions disappointed investors.
The Santa Clara, California-based company generated an adjusted $ 1.28 share in the December quarter, with sales of $ 18.7 billion. Analysts expected Intel to earn $ 1.22 per share on revenue of $ 19.01 billion. On an annualized basis, earnings increased 18%, while sales increased 9%.
For the first quarter, Intel expects an adjusted 87 cents and a revenue share of 16 billion US dollars, which was at the level of the same period last year. Wall Street forecasts a profit of $ 1.01 per share for Intel, with sales of $ 17.37 billion in the March quarter.
For the full year, Intel expects sales of $ 4.60 per share adjusted for sales of $ 71.5 billion. Wall Street was looking for an Intel profit of $ 4.55 per share for sales of $ 73.25 billion.
Intel Stock Consolidation for 34 Weeks
Intel stock lost 7% after trading on the stock market today. In the regular session, it rose by 3.8% to 49.76, as the chip stocks generally attracted. Intel's stock has consolidated at a buying point of 57.70 over the last 34 weeks.
"In the fourth quarter, we increased sales, increased profits, and introduced new 10-nanometer-based products that enable Intel to win and win in the future." Bob Swan, Intel's Chief Financial Officer and Interim Chief Executive, said in a press release.
Intel has not had a firm CEO since June 21. Back then, Brian Krzanich resigned when an investigation revealed he had an inappropriate relationship with an Intel employee.
"With Looking ahead, we are forecasting another record year and increasing the dividend as we expect the explosive growth in data to further boost demand for Intel products, "said Swan.
Intel's Board of Directors voted to an annual one Cash dividend increase of 5% to $ 1.26 per share The next quarterly dividend will be paid to the shareholders listed on February 7 on March 1.
I According to a report by RBC Capital Markets analyst, Amit Daryanani, Intel's data center group growth slowed to 9% yoy in the fourth quarter. This and the weak sales forecast for the year are worrisome, he said.
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