Intel’s fourth-quarter revenue and 2019 guidance
Intel (INTC) reported its fourth-quarter earnings results on January 24. The company’s stock fell nearly 7% in after-hours trading after it reported that its growth had slowed. It saw slowing sales in China and announced weak guidance for 2019.
The chip maker generated revenue of $18.66 billion in the fourth quarter, a rise of 9.4% year-to-date. It missed Wall Street’s consensus revenue estimate of $19.01 billion in the quarter.
The company has projected that it will generate $16 billion in revenue in the first quarter of 2019, flat growth year-over-year and much lower than analysts’ estimate of $17.4 billion.
Intel’s earnings beat analysts’ estimates
Intel expects to generate $71.5 billion for the whole of 2019, missing Wall Street’s estimate of $75.05 billion and representing a rise of only 1% annually compared to 13% in 2018. This expectation caused a steep fall in its stock in after-hours trading on January 24.
Although the chip maker missed revenue estimates, it beat earnings estimates. Intel earned $5.2 billion in net income in the quarter. Excluding some costs, the company earned $1.28 per share, slightly higher than the $1.22 Wall Street had expected.
After seeing strong growth in the first three quarters of 2018, the company saw sluggishness in the fourth quarter. It saw surprising growth in its core PC business in the first three quarters of the year.
Intel’s data center business also saw strong growth in 2018, but this business slowed in the fourth quarter. We’ll take a closer look at this slowdown in the next article.