By Yasin Ebrahim
Investing.com - Intel (NASDAQ:INTC) reported Thursday upbeat guidance and fourth-quarter earnings that markedly topped expectations as the work from home trend boosted demand for notebooks.
Intel ended the day up 6% as its quarterly was released just before the closer. Shares were slightly lower in after-market trade.
The company forecast first-quarter EPS of $1.10 on revenue of $18.6 billion, above consensus for EPS $0.96 on revenue of $16.36 billion.
The bullish guidance was supported by fourth-quarterly results that exceed the company's expectations. “We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year,” said Bob Swan, Intel chief executive.
Intel announced earnings per share of $1.52 on revenue of $19.98B. Analysts polled by Investing.com anticipated EPS of $1.1 on revenue of $17.45B.
Data-centric revenue fell 11% for the quarter year-on-year, paced by weakness in its internet of things and the memory business.
PC-centric revenue was up 9% in for the quarter, underpinned by record sales of notebook as the work- and learn-at-home trend continued.
The company also hiked its annual dividend by 5% to $1.39 per share.
As Intel gets ready to enter a new dawn of leadership, the outgoing Swan said the company was "strong strategic and financial position as we make this leadership transition and take Intel to the next level."
The leadership change will likely drastically improved the company's outlook, Investing.com's Haris Anwar said.
"Intel’s chances of breaking out of a sluggish growth cycle has drastically improved after the appointment of a new CEO, who has a strong technical background, and the involvement of an activist investor, Dan Loeb of Third Point (NYSE:TPRE) LLC.Combined with a strong roadmap of future products and the management’s ability to execute on this roadmap, Intel may have a winning combination which could speed up its turnaround and stem the share losses," said Investing.com analysts Haris Anwar.