Intel takes a post-earnings tumble

PC sales are flat, but data center numbers improve.

By InvestorPlace Jan 17, 2014 3:41PM

Image: Circuit Board © Datacraft Co Ltd, imagenavi, Getty ImagesBy Burke Speaker

Intel (INTC) fell Friday after the company announced that it failed to meet fourth-quarter expectations.

Revenue improved more than 1 percent to $13.8 billion to slightly edge Wall Street expectations, and earnings improved from 48 cents to 51 cents, but just fell shy of EPS estimates for 52 cents.

As a result, INTC shares were off smartly at the market's open, and were down more than 3 percent in the afternoon.

"We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago," said CEO Brian Krzanich. "We've built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren't on our roadmap six months ago."

PC sales were flat, though there was some hope in Intel's other branches, such as 8 percent improvements in data center revenues.

From The New York Times:

"Microsoft's plan to stop supporting its Windows XP operating system in April had spurred hopes that some corporations would replace employees' PCs. But Intel's chief financial officer, Stacy J. Smith, said that had only a minor impact on the quarter.

PC sales are losing ground to tablets and smartphones, a market that Intel has been slow to enter, but some analysts say they believe the industry's decline is slowing, potentially giving Intel breathing room as it struggles to develop better processors for mobile devices."

Intel has been criticized as being slow to adapt its processors for smartphones and tablets, and in that lag the markets are now dominated by the likes of Qualcomm (QCOM) and Samsung (SSNLF).

However, new computing devices such as PCs with detachable screens may help the PC business as potential growth drivers.

The company forecasts revenue of $12.8 billion for Q1 2014, which ends in March. Analysts expect $12.79 billion on average. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

More From InvestorPlace
Jan 20, 2014 3:09PM

 Intel (INTC), Apple Inc. (AAPL), Microsoft (MSFT), and Hewlett Packard (HPQ),   could greatly benefit through moving quickly to incorporate Micron's (MU) Automata and Hybrid Memory Cube (HMC) into server, super-computer, computer, laptop, netbook, tablet, and phone  components.  Jointly, these companies could become a new USA leading edge technology penta-force, with NO competition undermining prices, or margins.   

  Micron's 32 layer 3D only needs the hardware and software foundation laid to become this generation's, and the next generation's, de facto standard.   Samsung's 3D is only 24 layers. 

Jan 17, 2014 8:13PM
Intel's done very well protecting their $50 billion revenue stream that generates over $10 billion a year in profits.  They now have downsized their processors to Atom 3D 22nm chips and will do 14nm by the end of 2014. Moore's Law is still at work and with the 450mm wafers for 14nm chips they can now eliminate the extra 5-10% labor that's not needed any more. That should give Intel the least expensive, highest performance processors for all PC's including smart phones and tablets by 2015.
Jan 20, 2014 8:26AM
I'm holding on to my Intel Stock - Anyone calling for their death is mistaken. I am confident they will bounce back strong and when they do I'll profit from it.
Jan 20, 2014 1:14AM

So Intel's down 2.6% on earnings and Apple's down 2.45% on no news?

Jan 17, 2014 8:11PM
A future Republican in the making.​​​​​om/watch?v=AukE2​5​i​s​p​VY

They are simply adorable and loving little things aren't they?
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.