The American tech giant, Intel, is the latest in the league of technology companies to have reported fourth-quarter performance results in this cycle. As per Thursday’s earnings report, Intel beat analysts’ estimates for earnings and revenue that fueled an upward rally in its stock.
In after-hours trading on Thursday, Intel surged around 7% and posted a record high in almost two decades. Intel’s performance in 2020 has remained positive so far. The tech company has noted an around 15% hike in the stock market in January. At the time of writing, the stock is exchanging hands at around the record high of $69 per share. Intel managed to keep its investors satisfied in the past year as well with a massive annual gain of around 45%.
Intel’s Quarterly Revenue Marked An 8% Growth (Year Over Year)
Based on Refinitiv’s data, analysts had anticipated $19.23 billion in revenue for Intel in the fourth quarter. In terms of earnings per share, they had highlighted the forecast at $1.25. In Thursday’s earnings report, Intel printed its quarterly revenue at $20.21 billion as it made a significantly higher $1.52 of earnings per share in Q4. Intel’s quarterly revenue marked an 8% growth as compared to the same quarter last year.
Intel’s Client Computing Group segment generated the greatest revenue of $10.01 billion in the fourth quarter that beat the expert’s estimate of $9.74 billion and was reported 2% higher as compared to last year. Client Computing Group is the largest business unit for Intel. The Data Center Group, on the other hand, posted $7.21 billion in revenue that showed a 19% improvement (year over year) and was significantly higher than the $6.40 billion estimate for the fourth quarter.
Intel’s Memory Solutions Group (Non-Volatile), recorded $1.22 billion in revenue in Q4 versus a higher forecast of $1.28 billion. Lastly, the Internet of Things segment contributed $1.16 billion in Intel’s total revenue for the quarter that was higher than the estimate of $1.03 billion.
Intel Acquired Habana Labs For $2 Billion In Q4
Intel’s upbeat quarterly performance came amidst the shortage in PC chips supply. In the fourth quarter, the American tech giant also sold a major component of the smartphone modem segment to Apple Inc. Intel also acquired Habana Labs (an artificial intelligence startup) for $2 billion in the fourth quarter.
Despite Intel’s upbeat performance, its staunch business rival, AMD, is posing a serious threat to it with an all-new chip that uses 7-nanometer small transistors. Intel’s estimate for fiscal 2020 is currently at $73.5 billion in revenue and $5 of earnings per share.