Why Intel’s Record Q4 Is So Impressive

By Chris Lange Updated Jan 30, 10:47AM EST · Published Jan 23, 4:23PM EST

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Intel Corp. (NASDAQ: INTC | INTC Price Prediction) reported fourth-quarter financial results after markets closed Thursday. The firm said that it had $1.52 in earnings per share (EPS) and $20.21 billion in revenue, compared with consensus estimates that called for $1.25 in EPS and $19.23 billion in revenue. The same period from last year had $1.28 in EPS and $18.66 billion in revenue.

For the quarter, data-centric businesses achieved record revenue, led by record Data Center Group (DCG) revenue. DCG revenue grew 19% year over year, driven by robust demand from cloud service provider customers and a continued strong mix of high-performance processors.

Internet of Things Group (IOTG) revenue was up 13% on strength in retail and transportation. Mobileye achieved record revenue, up 31% year over year on increasing ADAS adoption.

Intel’s memory business (NSG) was up 10% on continued NAND and Intel Optane bit growth. PSG fourth-quarter revenue was down 17%.

The PC-centric business (CCG) was up 2% on higher modem sales and desktop platform volumes.

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Looking ahead to the first quarter, the company expects to see EPS of $1.30 and revenues over $19.0 billion. Consensus estimates call for $1.04 in EPS and $17.19 billion in revenue for the quarter.

Bob Swan, Intel’s CEO, commented:

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.

Shares of Intel closed Thursday at $63.32, with a 52-week range of $42.86 to $63.68. The consensus analyst price target is $58.28. Following the announcement, the stock traded up 7.5% at $68.06 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.