Intel shares up 7% due to strong earnings and revenue forecasts

0
2

Intel gave quarterly and year-round bullish revenue forecasts, suggesting that the demand for personal computers remains strong and that purchases by data center owners have returned.

Shares rose to 7.2 percent in recent operations. Income in the current period will be approximately $ 19 billion (€ 17 billion), and earnings will be approximately $ 1.23 (€ 1.11) per share, excluding certain items.

That compares with analysts’ average estimates of $ 17.2 billion and $ 1.04 per share.

Sales in 2020 will be approximately $ 73.5 billion, the company said Thursday night in a statement. Analysts were looking for $ 72.2 billion on average, according to data compiled by Bloomberg.

Fourth-quarter revenue also exceeded the highest Wall Street estimates. The results are driven by the strong growth of data center chips and the constant demand for personal computers.

Global PC shipments in the fourth quarter increased 2.3% over the previous year as companies upgraded to a new version of Microsoft’s Windows operating system, according to research firm Gartner.

Intel still has more than 80 percent of this market. It controls even more the server chip market, which has experienced a recovery in demand from owners of large data centers.

The largest US chip maker UU. He has lost his leadership in production technology, generating concern on Wall Street about sales growth and future earnings.

However, executives have said that Intel is targeting a wider range of markets and that the company has plenty of room to expand into new areas, such as networks and the automotive industry.

Fourth-quarter sales increased 8 percent to $ 20.2 billion, the California-based company said.

Analysts on average had forecast $ 19.2 billion. Net income was $ 6.9 billion, or $ 1.58 per share, compared to estimates of $ 1.23 per share.

Gross margin, or the percentage of sales remaining after deducting the cost of production, was 58.8 percent in the quarter. – Bloomberg

LEAVE A REPLY

Please enter your comment!
Please enter your name here