Intel shares are down despite earnings beat

Revenue from its mainstay PC business fell about 1 percent to $8.76 billion from a year earlier.

The world’s largest chipmaker net income fell to $3.61 billion, for the fourth quarter ended December 26, from $3.66 billion, a year earlier. These visualizations will update within 15 minutes of Thursday’s earnings announcement to reflect the data for Q4 2015. In a conference call with analysts and journalists, Krzanich noted that Intel’s financial numbers were able to remain essentially flat even as the global PC market continued its years-long decline.

Nevertheless, Intel maintained an optimistic front for its hardware interests, highlighting 14-nanometer products made up more than 50 percent of of the client computing group volume as of November while boasting “growing enthusiasm” for its sixth-generation Core processor, code named “Skylake.”

During the fourth quarter, Intel completed its $16.7 billion acquisition of Altera.

Intel Corp’s strong quarterly profit beat was overshadowed by concerns about slowing revenue growth in its highly profitable data centre business, sending its shares down about 5.6 percent in after-market trading.

Internet of Things Group revenue of $625 million, up 8 percent sequentially and up 6 percent yearover-year. Intel’s overall gross margin rose 1.3 percent points on a quarterly basis to 64.3 percent, better than the company’s forecast of around 62 percent.

Intel also predicted that in 2016, revenue would rise by a percentage in the mid- to high single digits, up from a previous prediction that revenue would grow in the mid-single digits.

Intel shares fell by one dollar, 3 percent, to $31.75 in after-hours trading following the earnings release.

Revenue in the current period will be $14 billion, plus or minus $500 million, the Santa Clara, California-based company said Thursday in a statement.

CEO Brian Krzanich said the results “marked a strong finish to the year and were consistent with expectations” for a strategy designed for a “smart, connected world”. All Other segment includes Non-Volatile Memory Solutions Group, Netbook Group and New Devices Group.

Earnings amounted to 74 cents a share. The company generated approximately $19.0 billion in cash from operations, paid dividends of $4.6 billion and used $3.0 billion to repurchase 96 million shares of stock.

Intel is also looking to pioneer new technologies, with IoT just one area it is pouring resources into. SSG segment includes McAfee and software and services group. Intel said it expects revenue in the range of $13.5 billion to $14.5 billion.