Intel Rises on Bottom Line Beat
NEW YORK (TheStreet) -- Intel (INTC) beat Wall Street's earnings estimate in its first-quarter results after market close on Tuesday, although revenue came in just below analysts' forecast. Shares gained in after-hours trading following the report.
Excluding items, Intel earned 38 cents a share on net income of $1.9 billion, down from 40 cents a share and net income of $2 billion in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 37 cents a share.
Intel shares ticked up 0.86% to $27.00 in after-hours trading, after closing the regular session higher at $26.77.
The semiconductor giant reported revenue of $12.8 billion, up from $12.58 billion in the prior year's quarter, but below analysts' estimate of $12.81 billion.
"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014," said Intel CEO Brian Krzanich, in a statement released after market close.
Prior to its earnings, Intel had been cited as a potential beneficiary of the recent easing in PC market weakness thanks to the Microsoft (MSFT) Windows XP migration and healthy commercial spending. Analysts were also looking for strength in Intel's server processor business.
Revenue from Intel's PC Client Group was $7.9 billion, down 1% compared to the same period last year. The company's Data Center Group revenue was $3.1 billion, a year-over-year hike of 11%.
The company's gross margin was 59.7% during the first quarter, up from 56.2% in the first quarter of 2013.
For the second-quarter, Intel expects revenue between $12.5 billion and $13.5 billion, and a gross margin between 61% and 65%.
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