Intel (INTC) Tops Q4 EPS by 8c

(Updated - January 15, 2015 4:08 PM EST)

Intel (NASDAQ: INTC) reported Q4 EPS of $0.74, $0.08 better than the analyst estimate of $0.66. Revenue for the quarter came in at $14.7 billion versus the consensus estimate of $14.7 billion.

• The fourth quarter 2014 results when compared to the fourth quarter from a year ago were the following:
• Revenue of $14.7B was up $0.9B (6%) from $13.8B
• Gross margin of 65.4% was up 3.4 points from 62.0%
• Operating income of $4.5B was up $0.9B (25%) from $3.5B
• Net income of $3.7B was up $1.0B (39%) from $2.6B
• Earnings per share of $0.74 was up $0.23 (45%) from $0.51

Revenue of $14.7B was up 1% sequentially and up 6% on a year-on-year basis. Total platform* volumes, across PC and Data Center, were up 7% on a year-on-year basis. Total platform* average selling prices were up 3% over this same time period.

• PC Client Group had revenue of $8.9B, up 3% on a year-on-year basis with platform volumes up 6% and platform average selling prices down 2% over that same period. On a year-on-year basis, desktop platform volumes were down 1% and desktop platform average selling prices were flat. Notebook platform volumes were up 11% and notebook platform average selling prices were down 3% over that same horizon. Relative to the third quarter, PC Client Group revenue was down 3% with platform volumes down 5% and platform average selling prices up 3%.
• The Data Center Group had revenue of $4.1B, up 25% on a year-on year basis with platform volumes up 15% and platform average selling prices up 10% over this same period. Relative to the third quarter, Data Center Group revenue was up 11% with platform volumes up 5% and platform average selling prices up 7%.

Q1 2015 Outlook

• Intel's Business Outlook for the first quarter does not include the effect of any business combinations, asset acquisitions, divestitures, or other investments that may be completed after January 15. The midpoint of the forecast ranges will be referred to when making comparisons to specific periods.

Revenue

• Revenue is expected to be $13.7B, plus or minus $500M in the first quarter. The midpoint of this range is down 7% from the fourth quarter, in line with the average seasonal decrease for the first quarter.

Gross Margin

• Gross margin in the first quarter is expected to be 60%, plus or minus a couple of points, down 5.4 points from the fourth quarter.
• Gross Margin Reconciliation: Q4'14 to Q1'15 Outlook (65.4% to 60% +/- a couple points)
• [note: point attributions are approximate]
• • - 2.0 points: Higher platform* unit costs primarily on 14nm products
• • - 1.5 points: Higher factory start-up costs
• • - 1.0 point: Lower platform* volumes
• • - 0.5 point: Higher platform* write-offs (primarily higher pre-qualification costs on Skylake)

For earnings history and earnings-related data on Intel (INTC) click here.

You May Also Be Interested In

• U.S. economy adds 199,000 jobs in November
• DocuSign Inc. (DOCU) tops consensus earnings, revenue estimates
• Meta Materials (MMAT) Releases Board Letter to Shareholders