Intel smashes earnings expectations

 
Billy Ehrenberg
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Intel is usually a good bellwether for the PC market (Source: Getty)

It was a strong end to 2014 for Intel. The world’s largest maker of semiconductors reported revenue of $55.9bn (£36.8bn) for the full year, a bump of six per cent on last year’s figure. That jump was matched by the fourth quarter figure: also up six per cent, this time to $14.7bn.

The results were driven by strong sales growth: according to the report there were “record full-year unit shipments of PCs, servers, tablets, phones and the Internet of Things; and exceeded the tablet goal by shipping 46 million units.”

The numbers

Full year revenue was $55.9bn, operating income was $15.3bn, net income was $11.7bn. Earnings per share, a key measure in the US, was $2.31. Earnings per share for the fourth quarter were 74 cents, above the 66 cents analysts had predicted.

Why it’s interesting

Sales were bullish and above expectation, despite the fact that sales of personal computers have been down. Intel supplies hardware for a large proportion of computers, including Apple’s. Companies buy up Intel’s processing chips in anticipation of sales, so Intel is usually a good bellwether for the PC market. These results could mean growth is on the horizon.

Intel’s chief executive, Brian Krzanich, said:

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.

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