Intel (NASDAQ:INTC) last posted its quarterly earnings data on Thursday, January 14th.
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Analysts had been modeling $14.808 billion and 63 cents a share. The company reported a net income of $11.4 billion for the year, down 2% compared with 2014.
The report underscores Krzanich’s strategy of using earnings from large but declining PC sales to bolster research and investment as he tries to reposition the company for a massively networked 21st century. For all of 2015, the segment’s revenue dropped 8 percent to United States dollars 32.2 billion.
She said Intel’s spending, which includes the $16.7 billion acquisition of Altera, has been growing – up from the third quarter and up again in guidance for the first quarter of this year. The company forecast a gross margin in the first quarter around 58 percent, down from Q4 due to charges for the Altera acquisition, lower volumes and factory start-up costs, mainly for 10nm.
Intel Corp’s strong quarterly profit beat was overshadowed by concerns about slowing revenue growth in its highly profitable data centre business, sending its shares down about 5.6 percent in after-market trading.
Revenue: Sell-side analysts polled by FactSet and contributors on Estimize both expect Intel to report revenue of about $14.8 billion, compared with $14.7 billion in the year-earlier period.
Revenue: $ 14.90 billion vs. $14.80 billion expected.
Shares of the Santa Clara, Calif., company fell 3.3% to $31.67 in after-hours trading as revenue growth slowed in the company’s data center group, an area the company has been looking to for growth.
For 2016, the company predicted revenue would rise by a percentage in the mid-to-high single digits, up from its previous estimate that predicted revenue would grow by a percentage in the mid-single digits. Assetmark now owns 3,174 shares of the chip maker’s stock worth $96,000 after buying an additional 2,760 shares during the last quarter. SSG segment includes McAfee and software and services group. The unit is still the company’s main business.
CEO Krzanich said “While the outlook for the first quarter reflects some caution for overall demand, particularly in China, we continue to expect solid growth in the business in 2016”, in an investors earnings call, following the publication of the results. Nevertheless, the apparent slowdown in data centers is worrisome, said Daniel Morgan, a vice president and senior portfolio manager at Atlanta-based Synovus Trust Co., which holds Intel shares.
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For the current quarter, the company sees revenue in a range of $13.5 billion to $14.5 billion, which, at the midpoint, is just above consensus for $13.9 billion.
