Intel results beat estimates on data centre growth

NEW YORK: Intel Corp blew past Wall Street profit and revenue expectations for the fourth quarter on the strength of record-breaking sales to data centre customers, even as it warned investors for the first time that fallout from security flaws found in its chips could hurt its future results and customer relationships.
Intel also boosted its full-year forecast for 2018 above Wall Street expectations, saying it would boost dividends 10 per cent to $1.20 on a yearly basis despite taking a $5.4 billion charge related to recent changes in US tax law. Intel shares rose 3.8 per cent to $47.06 in after-hours trading after the results.
Revenue from the company’s higher-margin data centre business rose about 20 per cent to $5.58 billion, beating the average analyst estimate of $5.13 billion, according to Thomson Reuters I/B/E/S. Revenue from Intel’s PC group hit $9 billion for the quarter, a 2 per cent decline from the year before, but ticked up 3 per cent for the year to $34 billion. — Reuters