Earnings report sends Intel's stock soaring to a 52-week high
Talk is cheap at the end of the day, so despite doomsayers predicting the demise of the PC, Intel's sales and revenue proved those notions wrong. Intel, the largest semiconductor company in the world, beat out analyst expectations by reporting first quarter revenue of $12.8 billion, operating income of $2.5 billion, net income of $1.9 billion, and earnings per share of 38 cents.
Intel's PC Client Group did decline 8 percent sequentially, but only 1 percent year-over-year, generating $7.9 billion during the first quarter of 2014. That's more than twice as much as Intel's Data Center Group, which ramped up 11 percent year-over-year to $3.1 billion.
"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014," said Intel CEO Brian Krzanich. "Additionally, we demonstrated our further commitment to grow in the enterprise with a strategic technology and business collaboration with Cloudera, we introduced our second-generation LTE platform with CAT6 and other advanced features, and we shipped our first Quark products for the Internet of Things."
Intel's performance impressed investors, who in turn sent the company's stock price temporarily above its 52-week high of $27.12. The stock price has since come down a bit and is currently trading at around $26.90, up around half a percentage point.