Intel Shares Drop On Q4 Sales, Q1 Guidance Miss

Intel Corporation INTC shares fell in after-hours trading after reporting fourth-quarter earnings.

The company reported fourth-quarter adjusted earnings of $1.28 per share, beating estimates by 6 cents. Fourth quarter GAAP sales came in at $18.7 billion, which may not compare to the $19-billion estimate.

Intel sees first-quarter adjusted earnings of 87 cents, and forecast sales of approximately $16 billion. Full-year sales guidance fell short of consensus, with sales of approximately $71.5 billion vs. $73.25 billion estimates.

“2018 was a truly remarkable year for Intel with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever,” said Bob Swan, Intel CFO and interim CEO. “Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products.”

Other Highlights

• Full-year revenue set an all-time record of $70.8 billion, up 13 percent year-over-year;
• Raised dividend 5 percent;
• Generated a record $29.4 billion cash from operations; and
• Fourth-quarter revenue up 9 percent year-over-year.

Intel shares were down 7.4 percent at $46.07 at time of publication.

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