NEW YORK (TheStreet) –– Intel's (INTC - Get Report) first quarter guidance was below estimates, but fourth quarter results beat earnings expectations by a wide margin, thanks to strong results from its Data Center Group.
For the first quarter of 2015, the world's largest chip maker expects revenue of about $13.7 billion, plus or minus $500 million, with gross margins at 60%, plus or minus a couple of percentage points. Analysts surveyed by Thomson Reuters expect the company to generate $13.77 billion in revenue for the first quarter. For the full year 2015, Intel said it expects revenue to grow in the mid to single digit percentage points, with gross margins at 62%, plus or minus a couple of percentage points. R&D plus MG&A is expected to be approximately $20 billion, plus or minus $400 million. For the full year, Intel said it's capital expenditures would be $10 billion, plus or minus $500 million, with a 27% tax rate.
Leading the way was strength in the company's Data Center Group, which saw revenue rise 11% sequentially and 25% year over year to $4.1 billion. Though the PC market has been strong in recent quarters, the PC Client Group took a downturn, with revenue at $8.9 billion, down 3% sequentially, though up 3% from the year ago quarter.
The company's Internet of Things Group saw revenue rise 10% year over year to $591 million, while the Mobile and Communications Group had negative revenue of $6 million. Intel's Software and services operating segments revenue of $557 million, flat sequentially and down 6% year over year.
"The fourth quarter was a strong finish to a record year," said Intel CEO Brian Krzanich. "We met or exceeded several important goals: reinvigorated the PC business, grew the Data Center business, established a footprint in tablets, and drove growth and innovation in new areas. There is more to do in 2015. We'll improve our profitability in mobile, and keep Intel focused on the next wave of computing. "
Shares were lower in after-hours trading, losing 2.3% to $35.36 following the results.-- Written by Chris Ciaccia in New York
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