Intel (NASDAQ:INTC) had a stellar Q4 2019 after it reported earnings that beat both the bottom and top lines. As a result, INTC stock surged 9% in early hours on Friday and pushed the stock to its highest-ever level in almost two decades.
Intel Q4 2019 Earnings Beat Estimates
The company reported revenue of $20.2 billion in the fourth quarter, an 8% increase from a year ago. Intel’s earnings for Q4 2019 were around $1.52 per share, beating analysts’ estimates of $1.25 earnings per share. Analysts had expected revenue of around $19.23 billion.
The Client Computing Group, which is the company’s largest operating segment, generated revenue of $10.01 billion, up 2% from last year. The Data Centre Group posted a 19% growth in revenue at $7.21 billion. IoT fetched $1.16 billion, while the non-Volatile Memory Solutions segment fetched around $1.22 billion.
Intel CEO Bob Swan said that the company exceeded its Q4 2019 expectations, capping off a fourth sequential record year. The company benefitted greatly from POC purchases in the holiday quarter, thanks to the user migration to Windows 10 from Windows 7. Equally, the Xeon-centric Data Centre Group performed exceptionally, boosting earnings.
INTC stock is one of the biggest gainers on the Nasdaq, with a jump of 9.13% at $69.10.
Also in the fourth quarter, Intel acquired AI chip company Habana Labs for $2 billion and finalized the sale of its smartphone modem business to iPhone maker Apple Inc. (NASDAQ:AAPL).
Intel Expects Higher Revenue from CCG Segment in Current Quarter
Similarly, Intel indicated that there was a short supply of PC chips. According to Nomura Instinet Analyst David Wong, the chip supply shortages might have been a result of the PC business being pushed to the March 2020 quarter. Wong said that this will cause the CCG revenue in the upcoming quarter to be unusually higher.
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Going into 2020, the company says it will continue facing competition from AMD (NASDAQ:AMD) as it tries to get its manufacturing on track. Already, AMD has beat Intel to the market with the 7nm transistor chips, and Intel’s 10nm server microprocessor unit is behind AMD. The CEO confirmed that its 7nm chips are expected in 2022.
INTC stock has soared 405% over the past year.
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