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Intel boasts of 'solid' Q4 results

Intel boasts of 'solid' Q4 results

Intel's Brian Krzanich has spoken of a 'solid fourth quarter with signs of stabilisation in the PC segment,' but its forecasts predict little growth.

Intel has reported 'solid' fourth-quarter revenue, but offered a lower than expected forecast that suggests the company does not believe the PC market is going to significantly improve in 2014.

In its most recent earnings call, Intel reported operating income for the quarter of $3.5 billion, an increase of 12 per cent compared to the same quarter last year. Profits, meanwhile, hit $2.6 billion for $0.51 earnings per share - an increase of six per cent year-on-year. The latest figures give Intel a year-total of $52.7 billion in revenue for profits of $9.6 billion - a drop in revenue of one per cent and in profits of 13 per cent.

'We had a solid fourth quarter with signs of stabilisation in the PC segment and financial growth from a year ago,' claimed Intel chief executive Brian Krzanich during the call. 'We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago.'

There's little denying that the global slump in traditional PC sales, which some claim may be bottoming-out, has hurt the company: its PC Client Group revenue dropped four per cent in 2013 compared to the year prior, with the company's figures buoyed by a boost in sales to data centres and the supercomputing industry that saw the Data Centre Group increase its revenue by seven per cent.

Krzanich unveiled a forecast which is decidedly conservative during the call: revenue for the coming financial year will, his bean counters calculate, stay roughly flat while its profit margins will shrink from 62 per cent to 60 per cent. Coupled with an increase in tax rate from 26 per cent - already higher than the previously-projected 25 per cent - to 27 per cent that could have a significant impact on the company's earnings that year.

With all that said, Intel is far from being in serious trouble - its competitors would doubtless kill for figures even half those reported during the company's earnings call. Investors have certainly taken the news in their stride, with Intel's stock price trading just 0.49 per cent down on the news.

12 Comments

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rollo 17th January 2014, 12:27 Quote
Pc growth dead, intel makes $2.6 bil estimated. Wish I could make $2.6 bil with no growth at all. See what AMD do i guess.
Corky42 17th January 2014, 13:09 Quote
PC growth isn't dead it's just having a mid life crisis :D

Revenues at Intel's division which makes chips for desktop computers fell 4% in 2013, data center business revenues rose 8%

I'm not to sure if i have used the right figures as the BBC article shows the above numbers, but Intel's own report says PC Client Group was flat year-over-year. :?
Cogwulf 17th January 2014, 14:03 Quote
Welcome to the wonderful world of economics, where a yearly revenue of over $52bn is interpreted as a bad sign by shareholders.
rollo 17th January 2014, 14:33 Quote
Apple makes this in a quater and a bit and it's considered a failure, that's the world of shares for ya.
Harlequin 17th January 2014, 14:57 Quote
Samsung make this in a quater as well.....
Gareth Halfacree 17th January 2014, 15:33 Quote
Quote:
Originally Posted by Corky42
Revenues at Intel's division which makes chips for desktop computers fell 4% in 2013, data center business revenues rose 8% I'm not to sure if i have used the right figures as the BBC article shows the above numbers, but Intel's own report says PC Client Group was flat year-over-year. :?
Dude, those figures are right there in my article. Oh, and the BBC has its sums wrong: the Data Centre Group grew seven per cent, not eight. :p Also, the reason you're confused: you're comparing Intel's results for the entire financial year to the BBC's figures for Q4 2013.
Quote:
Originally Posted by rollo
Apple makes this in a quater and a bit and it's considered a failure, that's the world of shares for ya.
Apple's cheapest product is somewhere in the region of £99 (Apple TV - no, I'm not counting chargers or official cases, 'cos they're accessories not products); Intel's cheapest product is, in volume, pence. Makes it a little bit harder to compare than that, no? Might as well bring in McDonald's $1.39 billion Q4 profit for all the good such a comparison does.
RedFlames 17th January 2014, 15:41 Quote
Quote:
Originally Posted by Gareth Halfacree
Apple's cheapest product is somewhere in the region of £99...

£79 iirc [Airport Express]...

And apple's hare price is down because stock markets, trying to glean any kind of insight or logic from share prices well... that way madness lies...

The stock price could've dropped because the profits weren't as obscene as they hoped, or because they didn't like Tim Cook's tie...
Corky42 17th January 2014, 17:30 Quote
Quote:
Originally Posted by Gareth Halfacree
Dude, those figures are right there in my article. Oh, and the BBC has its sums wrong: the Data Centre Group grew seven per cent, not eight. :p Also, the reason you're confused: you're comparing Intel's results for the entire financial year to the BBC's figures for Q4 2013.

Whoopsy, sorry.
I did read the article but when i scanned through it a second time i looked for the numbers saying what each dept gain or loss was, i must have missed the words four and seven :o
Snips 17th January 2014, 17:57 Quote
I think the comparison of Apple to Intel based on revenue/share price is clearly brainfart territory. Trying to link quoted data to share price even more so. Share price is a reflection on emotion with most of these big institutional brokers. If it was pure numbers we wouldn't see the fluctuation like when Steve Jobs stepped down or god forbid passed away.

With Intel you have pure consistency over the last decade which investors like. Apple get the very slight downturn because so called analyst predict that new product lines wont shift as much. Has that happened? Maybe a little with Apple being classed as "boring" or "The same but given a new number". Whether you think that or not, it still doesn't change the fact that they shift them by the mountain load.

The only share price that's consistently taking a beating is AMD. Is it as a company going anywhere? Will it go bust? Will it get bought out? Of course not, so in most cases, these market data releases mean absolutely nothing to you and I.
mi1ez 19th January 2014, 21:19 Quote
Is it just me, or does Brian look like Putin cross-bred with a turtle?
Nexxo 19th January 2014, 21:26 Quote
That's a rather unpleasant thing to do to a turtle...
Speed 19th January 2014, 23:02 Quote
Quote:
Originally Posted by mi1ez
Is it just me, or does Brian look like Putin cross-bred with a turtle?

More like a Giant Tortoise tbh.
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