- Intel (NASDAQ:INTC) shares are up 4.5% aftermarket following Q4 results that beat revenue and EPS estimates. The report marks the first since the highly publicized Meltdown and Spectre chip flaws.
- In-line Q1 guidance: revenue, $14.5B to $15.5B (consensus: $15.03B); EPS, $0.65 to $0.75 (consensus: $0.72); operating margin, 27%; tax rate, 14%.
- Upside FY18 guidance: revenue, $64B to $66B (consensus: $63.79B); EPS, about $3.37 to $3.73 (consensus: $3.26); operating margin, 30%; tax rate, 14%.
- Segment performance: PC-centric Client Computing Group, $9B (-2% Y/Y); Data Center Group, $5.6B (+20%); Internet of Things Group, $879M (+21%); Non-Volatile Memory Solutions Group, $889M (+9%); Programmable Solutions Group, $566M (+35%).
- For FY17, the PC unit CCG had $34B in revenues (+3%) and Data Center Group had $19.1B (+11%), which returns Intel to strong data center sales growth on the year.
- Cost cutting: Operating expenses were $5.4B in the quarter (-4% Y/Y) and $21.1B for the year (-9%). Intel plans to have operating expenses down to 30% of revenue by 2020 and the expenses were about 34% of revenue in 2017.
- Tax reform impact: Q4 reflects an income tax expense of $5.4B as a result of the tax reform. The non-GAAP tax rate for Q4 was 19.8%, up 1.4 points on the year. Company forecasts a 2018 tax rate of 14%.
- Earnings call at 5 PM Eastern with webcast available here.
- Press release
- Previously: Intel beats by $0.21, beats on revenue (Jan. 25)
- Previously: Intel declares $0.30 dividend (Jan. 25)
- Now read: Intel And AMD: Teaming Of The Rivals
Original article