Intel posted stronger-than-expected profits in the fourth quarter, a sign that the world’s largest chipmaker continues to sell a whole lot of processors even though it has largely failed to capitalize on the smartphone revolution.
Intel Reports a Pretty Decent Fourth Quarter, but Shares Fall on Less-Than-Rosy Outlook
The stock traded down 5 percent despite the better-than-expected earnings report.
Asa Mathat
The company posted earnings of $3.6 billion in net income, or 74 cents per share, on revenue of $14.9 billion. Analysts had expected earnings of about 63 cents per share on revenue of around $14.8 billion, according to Zacks investment research firm.
“Our results for the fourth quarter marked a strong finish to the year and were consistent with expectations,” Intel CEO Brian Krzanich said in a statement. “Our 2015 results demonstrate that Intel is evolving and our strategy is working. This year, we’ll continue to drive growth by powering the infrastructure for an increasingly smart and connected world.”
Intel’s profits came even as the PC market endured another tough quarter, showing the company’s strength in the data center and other areas.
However, the company also cautioned that it expects revenue to be around $14 billion, plus or minus $500 million. That includes $400 million in revenue from its recent Altera acquisition. Intel said that its core business “is at the low end of seasonality.”
Shares traded lower in after-hours trading, changing hands recently at $31.09, down $1.65 or 5 percent.
This article originally appeared on Recode.net.
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