Intel Corporation (NASDAQ: INTC) released their Q4 2019 earnings after the market close today, significantly beating analyst expectations.

The chip manufacturing giant reported revenues of $20.2 billion in the final quarter of last year, beating consensus estimates of $19.23 billion by 5%.

Sales in the PC side of the business, which accounted for almost 50% of overall revenues, bounced back by growing 2% over the same quarter last year after being down 5% year over year in Q3. With reports of rival AMD (NASDAQ: AMD) beginning to win over the lucrative PC gaming market, Intel may face headwinds in this segment without new product innovation.

On the data-centric segment of Intel’s revenues, the Data Centre group saw revenues rise 19% compared to the same quarter last year and IoT (Internet of Things) revenues were also up, with 13% year-over-year performance. In particular the Mobileye segment showed healthy growth of 31% compared to last year.

Intel continued its push into growth segments within its data-centric business in Q4 with its $2 billion acquisition of AI chipmaker Habana Labs. At the time of the acquisition Intel expected more than $3.5 billion in ‘AI-driven revenue’ in 2020 which would be a year-over-year growth of 20%.

“In 2019, we gained share in an expanded addressable market that demands more performance to process, move and store data. One year into our long-term financial plan, we have outperformed our revenue and EPS expectations. Looking ahead, we are investing to win the technology inflections of the future, play a bigger role in the success of our customers and increase shareholder returns.”Intel CEO, Bob Swan

On the bottom line the chipmaker reported earnings per share of $1.58 for the quarter which were much higher than the $1.25 expected by analysts.


Intel’s 2020 Guidance Surprises Compared to Expectations

Intel also provided guidance on their 2020 financial performance, reporting expected revenues of $73.5 billion and EPS of $4.71 for the full year. Compared to Wall Street analyst expectations for the company, these numbers were surprising.

Consensus estimates for the chipmaker were $72.15 billion in sales and $4.65 earnings per share for Intel over 2020, 2% and 1% lower than the company’s guidance.

Intel’s stock enjoyed had a decent 2019, returning 30.7% over the full year, which while healthy was far behind their peers like AMD which saw its stock go up by nearly 150% in 2019. So far in 2020 Intel’s stock is up over 6% and thanks to the 2020 guidance was trading up 7% in after market trading immediately after releasing earnings at the time of publishing.

About Author

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.