Intel just blasted through expectations on its first quarter earnings, sending and the stock up more than 6% after hours.
The company reported earnings of $0.56 per share on revenue of $12.85 billion.
Consensus estimates were earnings of $0.46 per share on revenue of $11.6 billion.
Intel’s main business is providing chips for PCs, and the PC market has had a tough quarter — IDC recently estimated that worldwide sales dropped from last year for the first time since the recession ended.
But apparently the slowdown didn’t affect Intel, as revenue in its PC group was up 17% from last year (and up 12% from last quarter) to $8.62 billion. That’s mainly because Intel is charging higher prices for chips: average sales prices went up for the sixth consecutive quarter, not including the low-priced Atom chips used in portable devices.
Revenue from the data centre group (chips for servers) was up 32% to $2.46 billion, and mobile/embedded revenue rose 70% from last year to $1.15 billion. (Intel calls this last group “other architecture,” and it includes mobile phones, tablets, and other types of devices.)
Intel says it expects revenue of $12.8 billion in the current quarter as well, with margins around 61%. That outlook apparently was enough to satisfy investors.
Earlier in the day, Intel shares were up 1% thanks to positive remarks about the PC market from Texas Instruments on its earnings call yesterday. But the stock gave up most of those gains by the close of trading.
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