Intel’s Fourth-Quarter Earnings Forecasts Exceed Expectation
In the fourth quarter, the US semiconductor giant Intel (INTC.O) announced on the 23rd, profits and sales exceeded market expectations. Full-year sales forecasts were also higher than expected, boosting the market’s view that the semiconductor industry is coming out of a long slump.
Powered by demand from cloud service providers, market-focused data center revenues grew 19% to $ 7.2 billion, surpassing market expectations of $ 6.4 billion. Stock prices rose about 7% in after hours trading after the close.
Earnings per share were $ 1.52 in the fourth quarter, exceeding analyst expectations of $ 1.25.
Net sales increased 8.3% to $ 20.21 billion. Analysts compiled by Refinitive are forecasting $ 19.230 billion.
Client Computing, which generates the most revenue, had sales up 2% to $ 10 billion. It surpassed the fact set’s forecast of $ 9.74 billion.
The sales forecast for 2020 is about $ 73.5 billion. Refinitive’s analyst estimate was $ 72.25 billion.
George Davis, CFO, told Reuters that sales to cloud service providers increased by 48% in the fourth quarter, saying that “synchronization is owed to hyperscalers. It was great. ”
Although we did not name the customers, Amazon Web Services (AWS) (AMZN.O), Microsoft (MSFT.O), China’s Alibaba group (BABA.N) and Baidu (BIDU.O) Hyperscalers such as) use Intel semiconductors for data centers.
Davis also pointed out that the company’s positive outlook is not directly related to the “first-stage” trade agreement signed by the US and China last week. “We are not yet at a stage where we can fully understand how a particular trade agreement will affect attitudes.” Yes, “he said.