Intel Swings to Quarterly Loss on Tax Charge -- Earnings Review

   By Maria Armental 
 

Intel Corp. (INTC) reported the first quarterly loss since the first quarter of 2009, driven by a one-time charge related to recent changes in U.S. tax law. Here's what you need to know:

EARNINGS: Intel swung to a fourth-quarter loss of $687 million, or 15 cents a share, from a year-earlier profit of $3.56 billion, or 73 cents a share. Excluding the impact from the tax-law changes and other items, per-share profit rose to $1.08 from 79 cents a year earlier, beating analysts' projected 86 cents a share.

TAX LAW: The company recorded one-time charges of $5.4 billion related to the new tax law.

REVENUE: Revenue rose 4% to $17.05 billion, beating analysts' estimates of $16.35 billion. Of note, the data center group, a unit key to Intel's future, reported a 20% revenue increase.

GROSS MARGIN: Gross profit margin improved to 63.1% from 61.7% a year earlier.

OUTLOOK: In 2018, Intel estimates $3.30 a share in profit, or about $3.55 as adjusted on about $65 billion, compared with analysts' $3.03 a share in profit, or $3.27 as adjusted, on $63.8 billion projection.

STOCK: Shares, up 20% over the past 12 months, rose 3.5% to $46.90 in after-hours trading.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

January 25, 2018 17:39 ET (22:39 GMT)

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