Intel Corporation's Fourth Quarter Fiscal Year 2015, Financial Results Are Out

The technology chipmaker has posted positive results for the fourth quarter.

The financial results for the fourth quarter of fiscal year 2015 have been posted by Intel Corporation. The chipmaker has posted positive results for the latest quarter. The revenue generated during three month period ending December 31, 2015 were $14.9 million, beating the revenue consensus of analysts which was of $14.8 billion. Even though the technology company has been witnessing declining sales in its PC unit but it has managed to outperform via its data center group.

Earnings per share reported by the largest chipmaker in the industry were at 75 cents, again beating the average consensus of stock experts, who predicted the EPS to be 63 cents per share. For the next quarter which will be the first quarter for fiscal year 2016, the company has predicted that the revenue that will be generated during the time will be $14.1 billion. On the other hand, the analysts predict that it will be as much as $13.88 billion.

Clearly, the investors at Wall Street were not quite impressed by the results posted by the chipmaker organization as the stock of the tech company decline by 5% and was trading below $31 during the after-hour trading. We know now that the company does not depend on the sales of its personal computers anymore as the PC sales are only going towards extinction now. In the fourth quarter, the sales fell by 1% on year over year basis.

Additionally, apart from its traditional chip making business, Intel Corp has moved towards building next level Skylake Chips. Last year in June, the technology organization acquired Altera for a price of $16 billion with the help of which it is building programming chips. Every device that the company makes from now onwards will have these programming chips in them now, including robotics as well as data centers.

In the last four years, the PC market has declined quite drastically so now it completely relies on its data centers for generating revenue. From the previous year’s fourth quarter, the revenue generated by the data centers has grown by as much as 5% and is now at $4.3 billion. However in the previous quarter, the data centers saw an increase of 12% to $41 billion worth sales. In the server market, the major acquisition that took place last year is playing an essential role in terms of strengthening the company in the specific market.

On the other hand, Intel Corp has also signed a partnership deal with Ascending Technologies, a drone manufacturing organization, in order to enter the drone market. Furthermore, Internet of Things is quite big with Intel too as the sales have increased by 10% to $581 million.

2016 Could Be The Best Year Yet for Intel Corporation

The chip-maker is expected to have better than expected revenue growth results and eps for the coming year.

Could 2016 be the best year for the chip-manufacturer giant, Intel Corporation? According to Motley Fool, the answer to that question is ‘Yes.’ In the current year, the sales of the tech giant were worse than expected due to quite a few factors because of which the revenue generated in 2015 witnessed an overall decline.

The analysts and the company itself remain hopeful for the coming year mainly because of two of the segments, which include its client computing group and its data center group. Even though the client computing group I is much larger than the data center group, the latter is growing at a fast rate. It is expecting the PC sales to see a slight dip in the market in the following year. As for the data center group, the tech organization initially expected it to grow by 15% but now it has lowered down its expectations to ‘low double digits’.

For the coming year, Intel has over three segments to consider which include Internet of Things, non-volatile memory and software services. Even though, in their own space, these business units do not amount to much but in aggregate they were able to generate as much as $7 billion in the current year. The tech corporation states that increased revenues are expected from all three business units for the year 2016.

From revenue perspective, turns out the following year is going to be the best year for the chipmaker as all the businesses are likely to grow. As for the earnings per share estimations, analysts are estimating the range to be $2.06 to $2.61 per share. Back in 2011, the EPS of the tech organization was $2.39. As for the mobile efforts, Intel is expecting to reduce loses in the mobile market by as much as $800 million in the coming year.

Intel stock was at $35 per share on December 23, 2015 which indicated an increase of 0.78%. In the coming year the earnings per share growth is expected to be at 6.42%. In the past five year, the growth rate of ESP was 24.60%. Return on equity rate of the tech giant is 20.30%. The total market cap of the chip manufacturing corporation is 168.89 billion. The share price was seen hit an high of 35.05 and a low level of $34.78. The price to earnings reported by the company is 14.96.