Intel Corp. (INTC) recently announced strong financial results for the fourth quarter along with an upbeat outlook. The chipmaker giant reported earnings of $5.86 billion, or $1.42 per share, as compared to $1.58 per share in the comparable period, one year ago. On an adjusted basis, the company earned $1.52 per share, easily beating the consensus forecast of $1.11 per share.
Revenue for the quarter came in at $19.98 billion, above analysts’ average forecast of $17.53 billion. If we look at the performance of key segments, revenue at its data center segment fell 16 percent to $6.1 billion, revenue at the nonvolatile memory solutions sipped 1 percent to $1.2 billion, and Internet of Things (IoT) revenue plummeted 16 percent to $777 million.
On the bright side, Intel’s PC segment generated revenue of $10.9 billion in the quarter, up 9 percent from the comparable period of 2019, and above the consensus forecast of $9.57 billion. Moreover, revenue at its subsidiary Mobileye climbed 39 percent to $333 million, well above analysts’ average estimate of $234.2 million.
Looking forward, Intel projected adjusted earnings of $1.10 per share and revenue of $17.5 billion. On the other hand, analysts on average expect the company to report an adjusted profit of 93 cents and on sales of $16.08 billion.
INTC shares plummeted more than 9 percent on Friday despite a solid quarterly performance. The drop apparently came after the newly appointed CEO Pat Gelsinger said that the company will continue to manufacture most of its products internally at least through the next three years.
The comments were not welcomed by investors as they expect Intel to outsource its production operations. Gelsinger will officially take charge of the company as CEO on February 15. He is taking the leadership role at a time when the company is struggling to launch new products.