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Intel's Fourth Quarter Was "Solid," but Unexciting; Shares Drop

By Anders Bylund – Jan 16, 2014 at 8:02PM

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Intel investors slashed nearly 3% off Intel's share prices in response to a fourth-quarter report that CEO Brian Krzanich called "solid."

Image source: Intel.

Intel (INTC 7.61%) just reported results for the fourth quarter and full year of 2013.

Fourth-quarter revenue increased 3% year over year, to $13.8 billion. Earnings jumped 6% higher, landing at $0.51 per share. Sales were in line with analyst estimates, but Intel missed Wall Street's earnings target of $0.52 per share.

Product trends worked out much as expected. Sales in the PC systems group were flat year over year, while data center product sales increased by 8%. The "other" segment improved sales by 9%.

Intel CEO Brian Krzanich called it a "solid" quarter that showed signs of a stabilizing PC market. He also noted that Intel is moving more swiftly into new opportunities. At this week's CES trade show, for example, "We demonstrated multiple devices that weren't on our roadmap six months ago," he said in a prepared statement.

Looking ahead, Intel sees first-quarter revenues right at the $12.8 billion analyst target, in line with normal seasonal patterns. Further out, management expects sales in 2014 to come in "approximately flat" from 2013 levels. Analysts are looking for slight growth, to the tune of roughly 1%.

Intel shares are trading 2.8% lower in after-hours action.

Fool contributor Anders Bylund owns shares of Intel. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel.

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