Chip giant adds to the tech good news after it beats Wall Street forecasts thanks to IoT and data centres
Intel has pleased Wall Street by been expectations, despite it posting mixed results that reflects its struggles in the post PC world.
The results do show the success the chipmaker is having moving away from the declining PC market, with strong performance from its Internet of Things (IoT) and data centre operations.
The firm is also actively exploring other areas such as connected cars and autonomous driving solutions.
Intel’s latest financial results revealed that for the fourth quarter ending 31 December, it posted a healthy net profit of $3.6 billion (£2.8bn) down from $3.6 billion (£2.9bn) in the same year-ago quarter.
Revenues rose to $16.4 billion (£13bn) from $14.9 billion (£11.8bn) a year ago, and earnings per share was 79 cents (£0.63)
Analysts has been expecting Intel to post earnings of 74 cents (£0.59) a share and $15.7 billion (£12.5bn) in revenue, according to a consensus estimate from Thomson Reuters, and consequently its shares rose more than two percent in after-hours trading.
Looking at the annual results, Intel once again posted a small profit of $10.3 billion (£8.2bn) compared to $11.4 billion (£9.1bn) in 2015. Yearly revenues rose to $59.4 billion (£47.2bn) from $55.3 billion (£44bn) in 2015.
“The fourth quarter was a terrific finish to a record-setting and transformative year for Intel,” said CEO Brian Krzanich. “In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities.”
“I’m pleased with our 2016 performance and confident in our future,” he added.
Intel performed among Wall Street expectations in two division, after its Client Computing Group posted revenue of $9.1 billion (£7.2bn), up four percent year-over-year. Analysts had been expecting $8.55 billion (£6.8bn).
Revenue for Intel’s data centre group came in at $4.7 billion (£3.7bn), an eight percent year-over-year increase for the quarter. Analysts had been expecting $4.78 billion (£3.8bn).
And finally the Internet of Things Group revenue was $726 million (£577m), up 16 percent year-over-year. Analysts had been expecting $703.6 million (£560m).
Intel of course is a company that has undergone profound changes and restructuring in the past few years.
Last year it sought to pursue a slice of the increasingly crowded artificial intelligence (AI) market.
More recently Intel purchased a 15 percent share of mapping software company Here Maps, as part of its self-driving move.
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