NEW YORK (TheStreet) –– Intel (INTC) shares tacked on gains following a sharp run up Thursday after the company held its analyst day, announcing 2015 guidance and soothing investors' about the future of the world's largest chipmaker.
At its analyst day in Santa Clara, Calif., Intel CEO Brian Krzanich and his team laid out the road map for 2015, saying the company expects revenue growth to be in the mid-single digits for the year, as the PC sector continues to rebound off the low levels seen in 2012 and 2013. The company also announced that annual gross margins would be 62%, plus or minus 200 basis points. R&D plus selling, general and administrative Expense (SG&A) costs would be approximately $20 billion, plus or minus $400 million, with capital spending for the year at $10.5 billion, plus or minus $500 million.
The company also boosted its annual dividend to 96 cents a share, up 6 cents, as it continues to generate significant amounts of cash, returning much of it to shareholders. "Today's dividend announcement reflects the board's confidence in Intel's strategy," said Intel Chairman Andy Bryant in the press release, announcing the move. "It also reflects the board's ongoing commitment to create value and return cash to Intel's stockholders."
During the analyst day, Krzanich, who replaced Paul Otellini in May 2013, also touched on the mobile chip business, which the company announced was merging with its PC group following a third quarter that saw Intel's revenue from mobile chips decline to just $1 million, down from $353 million in the year ago period. Krzanich said, "It's not that we're proud of it, but we're not ashamed of it, either," referring to the billions in losses the group has cost Intel, losing more than $1 billion in the third quarter alone.