Intel Corp. (INTC, Financial) hit some major milestones in a fourth quarter of wildly impressive earnings, sending its stock up by almost 11% in Friday afternoon trading.
The stock stood at $49.61 per share and has seen an increase of more than 30% over the last year, GuruFocus data shows.
The Silicon Valley tech giant saw its data-centric businesses climb to an all-time high, delivering 47% of revenues totaling $17.1 billion in the quarter.
Company divisions, such as the Data Center Group, also achieved record quarterly revenue.
The company is trying to reshape it focus to chips, data centers and connected devices in order to survive the decline of the personal computer.
All told, the Santa Clara top-performer handily beat the market on key financial indicators.
“Compared to the expectations we set, our revenue was stronger, our operating margins were higher, and our spending was lower,” Intel CEO Bob Swan said in a statement included with the earnings report.
Earnings were $1.08 per share, well above the 87 cents forecasted by Wall Street.
Revenues went up by 4% to $17.1 billion in the quarter compared to the same period last year. The estimates take into account GAAP accounting.
Tax hit
The company is taking a one-time $5.4 billion hit from the law that now taxes foreign earnings.
It appeared to be the single blemish on an earnings report showing a net income loss of $700,000 (to make up for the new federal tax law).
It reported net income of $3.6 billion during the same period last year.
Net income on earnings per share, as a result, came to a loss of 15 cents per share compared to a gain of 73 cents per share over the same period last year.
For the full year, revenue stood at $62.8 billion compared to $59.4 billion in 2016. The difference is an increase of 6%.
The company generated a record $22.1 billion in cash from operations and paid dividends of $5.1 billion.
The company currently has a market cap of $232 billion.
Guru investors
Ken Fisher (Trades, Portfolio) recently added nearly 600.000 shares of Intel. He now owns more than 21.8 million shares of the stock.
Other guru sharholders include Chris Davis (Trades, Portfolio), Robert Olstein (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Richard Pzena (Trades, Portfolio).
According to GuruFocus, the company has a price-earnings (P/E) ratio of 17.4 and a price-book (P/B) ratio of 3.3. Both ratios are significantly higher than the median.
Its dividend yield is at 2.2% versus the median of 1.76%.
GuruFocus ranks the company a 6 out of 10 in financial strength and an 8 out of 10 in profitability and growth.
