Intel Corporation (NASDAQ: INTC) stock rises on solid results

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Intel Corporation (NASDAQ: INTC) stock rose over 7.3% on 24th January, 2020 (as of 10:30 am GMT-5; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. In 2019, Intel has generated cash from operations of $33.1 billion and $16.9 billion of free cash flow, and returned about $19.2 billion to shareholders.

Intel’s collection of data-centric businesses revenue up 15% in the fourth quarter, due to 19% rise in Data Center Group (DCG) revenue. DCG revenue in the fourth quarter, is due to robust demand from cloud service provider customers and a continued strong mix of high-performance 2nd-Generation Intel Xeon Scalable processors. INTC has acquired Habana Labs in the fourth quarter, which has strengthened its artificial intelligence portfolio for the data center. Internet of Things Group (IOTG) revenue rose up 13% dueto strength in retail and transportation. Intel’s memory business (NSG) was up 10% driven by continued NAND and Intel Optane bit growth. PSG fourth-quarter revenue fell 17% YoY. In the fourth quarter, the PC-centric business (CCG) rose up 2% due to higher modem sales and desktop platform volumes.

INTC in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.52, beating the analysts’ estimates for the adjusted earnings per share of $1.24, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8 percent to $20.2 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 5.24%.

Additionally, the company has approved a five percent cash dividend increase to $1.32 per share on an annual basis. The company has declared a quarterly dividend of $0.33 per share on the company’s common stock, which will be payable to shareholders on March 1, of record on February 7.

Intel expects the adjusted first-quarter earnings to be of $1.30 per share, well ahead of the $1.04 estimate, on sales expected to be of $19 billion that also came in ahead of the $17.1 billion estimate. For the first quarter 2020, the company expects operating margin to be 35%

For the fiscal 2020, the company expects revenue to be approximately $73.5 billion, Operating margin is expected to be 33%, Tax rate is expected to be of 13%, Earnings per share is expected to be $5.00, Cash from operations is expected to be $33.5 billion, Full-year capital spending is expected to be $17.0 billion and Free cash flow is expected to be $16.5 billion.

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