NEW YORK (TheStreet) -- Intel's (INTC) fourth-quarter earnings missed Wall Street estimates after the company's PC business showed a little bit of strength, sending shares lower by 2.8% to $25.81 in after-hours trading.
For the fourth-quarter, Intel earned 51 cents a share on $13.8 billion in revenue, with gross margins coming in at 62%.
Analysts surveyed by Thomson Reuters expected Intel to earn 52 cents a share on $13.71 billion in revenue for the fourth quarter.
"We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago," said Intel CEO Brian Krzanich in a press release. "We've built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren't on our roadmap six months ago."
The company noted its PC Client Group generated $8.6 billion in sales during the quarter, up 2% sequentially and flat year-over-year, as the segment looks to be bottoming out. Intel's Data Center Group generated $3 billion in sales, up 8% year-over-year and and 3% gain in sequentially. Intel's architecture operating segments group, which sells mobile chips, generated $1.1 billion in sales.
Gross margins came in at 62%, 1% point above the midpoint of the company's prior expectation of 61%.
For the first-quarter, Intel said it sees gross margins at 59%, plus or minus a couple of percentage points. Revenue is expected to be $12.8 billion, plus or minus $500 million for the quarter.
For the full year, Intel said it expects revenues to be flat compared to 2013, when the company generated $52.7 billion in revenue. It expects yearly gross margins to be 60%, plus or minus a few percentage points.
Intel shares closed lower in Thursday trading, off 0.49% to $26.54.
--Written by Chris Ciaccia in New York