Intel has beaten Wall Street's expectations in its fourth-quarter earnings report, showing strong growth in its key businesses. The world's largest chip maker reported a net income of $3.7 billion and non-GAAP earnings of 74 cents per share (EPS) on $14.72 billion in revenue. The figures are up 6 per cent year-over-year and soundly beat analyst expectations of an EPS of 66 cents on $14.71 billion in revenue.
Intel produced net income of $11.7 billion, or $2.31 a share on $55.9 billion in revenue for the full year. This record amount is six per cent higher than the $9.6 billion net income, or $1.89 a share on revenue of $52.7 billion, from a year earlier.
"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."
The results are seen as a good benchmark for forecasting the computer market in 2015. Fourth-quarter PC Client Group revenue dropped three per cent sequentially but grew three per cent year-over-year to $8.9 billion. For the whole year, the company's IoT unit is showing rapid growth, with revenue of $2.1 billion, up 19 per cent from 2013. Its Data Center Group's revenue also soared, accumulating $14.4 billion for the year, climbing 18 per cent from 2013 figures. Intel's Software and Devices revenue lies flat from the prior quarter at $557 million, down 6 per cent from a year ago.
Krzanich promises that the company will place more focus on improving profitability in its mobile division in 2015 as it continues to be a weak spot for the processor giant. The Mobile and Communications Group saw a negative revenue slide of $6 million in Q4, consistent with expectations, and was down 85 per cent from 2013 with full-year revenue recorded at $202 million.
Wall Street is expecting Intel to deliver earnings of 51 cents per share on top of $13.77 billion in revenue for Q1 2015, but Intel is slightly less optimistic about the upcoming quarter, projecting revenue of $13.7 billion, plus or minus $500 million, and gross profit margins of 60 per cent. Overall revenue growth in 2015 is anticipated to be in the mid-single-digit percentage points.