Intel (INTC 48.46, +3.16) is higher by 7.0% in pre-market, jumping to its best level since late 2000, after reporting better than expected quarterly results.
The chipmaking giant reported above-consensus fourth quarter earnings of $1.08 per share on a 4.1% year-over-year increase in revenue to $17.05 billion, which was also ahead of estimates. In addition to reporting upbeat results, the company raised its quarterly dividend 10.0% to $0.30 per share.
When excluding the results from McAfee, Intel's revenue increased 8.0% year-over-year. Data-centric revenue grew 21.0% to $7.94 billion. Data-centric revenue made up 47.0% of the company's quarterly revenue, representing a record. PC-centric revenue decreased 2.0% to $9.00 billion, even though the Client Computing Group unit shipped a record volume of i7 processors and launched the new 8th generation line of processors.
Intel's CEO noted that strategic investments made in memory, programmable solutions, communications, and autonomous driving have begun paying off and are expected to continue producing results.
Gross margin improved to 64.8% from 63.1% one year ago while operating income increased 21.0% to $5.90 billion.
The company ended the quarter with 102,700 employees, down form 106,000 during the year-ago quarter.
Looking ahead, Intel expects that earnings for the first quarter will be between $0.65 and $0.70 per share, which encompasses current market estimates. First quarter revenue is expected between $14.50 billion and $15.50 billion, which also envelops market expectations. The company expects that its effective tax rate in 2018 will be 14%, down from the non-GAAP rate of 22.5% in 2017.