Bob Swan, then interim chief executive and chief financial officer of Intel Corp., will reiterate when the company’s research and development facility was established in Bengaluru, India, on November 15, 2018.
Samyukta Lakshmi | Bloomberg | Getty Images
Intel stock rose more than 6% on Thursday as the chipmaker reported higher-than-expected earnings and earnings from investors and its own forecast on Thursday.
Information on Intel’s earnings was available on financial wires minutes before markets closed on Thursday.
The strong earnings report covering the quarters that ended last December comes at a critical time for the chip giant as Thursday ‘s report is the last by Bob Swan in the Director’ s role. On February 15, Pat Gelsinger will take over.
Here’s how Intel did it:
- Earnings per share (EPS): $ 1.52, adjusted, vs. $ 1.10 expected from Refinitiv consensus estimates.
- Income: $ 20 billion, vs. $ 17.49 billion expected by Refinitiv consensus estimates.
- Estimate: Q1 2020 revenue of $ 18.6 billion and EPS of $ 1.03.
Intel also increased its cash share by 5% to $ 1.39 per share.
Intel said it has exceeded its own forecasts to strength in PC sales. He said 33% more PCs with Intel chips were sold than at the same time last year. PC sales have been strong over the past year as people working or attending school from home are looking to upgrade their computers.
Leadership transition is not the only challenge facing Intel. In December, Third Point Entrepreneurs ’hedge fund persuaded Intel’s board of directors to make a number of changes to the company, including considering the release of chip production or the elimination of parts of the industry, such as construction .
Dan Loeb, CEO of the third point also addressed Intel’s biggest problem in its December letter when it noted that Intel has fallen behind Asian chip furnaces in terms of its ability to manufacturing the most advanced processors.
Intel’s latest chips use a 14-nanometer process, as they have since 2013, while competing chips made by TSMC currently use a 5-nanometer process. A smaller process is better because more transistors can fit into the same chip, boosting power and efficiency.
Intel customers such as Apple, Amazon, and Microsoft have developed their own processors, or stated that they intend to do so.
Gelsinger, a recent CEO of VMWare, has a technical background and is expected to push Intel to become more competitive in chip manufacturing. Intel said it had started making 10 nanometer chips during the quarter, and will start manufacturing more in this quarter.