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Intel (INTC) 4Q Earnings Down 27 Pct, 1Q Revenue View Lags Estimates

 January 17, 2013 04:11 PM

(By Balachander) Intel Corp. (NASDAQ: INTC) reported a fall in quarterly earnings and revenue as macro-economic concerns continue to mute growth and recovery in the semiconductor sector.

The world's largest chip maker earned 51 cents a share on a non-GAAP basis, down 24 percent from the year-ago quarter. Net earnings fell 26.5 percent to $2.47 billion.

Revenue declined 3 percent to $13.48 billion.

Wall Street analysts, on average, expected earnings of 45 cents per share on a revenue drop of 2.50 percent for the fourth quarter.

The company, whose President and CEO Paul Otellini will be retiring in May, is facing softness in the enterprise PC market segment and slowing demand in emerging markets amid surging growth of tablets and smartphones.

[Related -Intel Corporation (INTC): An 18.1% Yield From Intel?]

Non-GAAP gross margin contracted to 59.0 percent from 65.4 percent in the same period of last year.

Intel's PC client group revenue dropped 6 percent and "other" Intel architecture group revenue also fell 7 percent. Data center group revenue rose 4 percent.

Operating expenses increased 7 percent and research and development and marketing, general and administrative expenses also rose 7 percent.

Looking ahead for the first quarter, Santa Clara, California-based Intel sees revenue of around $12.7 billion, versus analysts forecasts of $12.92 billion. It sees gross margin of around 58 percent.

For the full year 2013, the company expects revenue growth in low single-digits on gross margin of around 60 percent.

[Related -Intel Corporation (INTC) and 5 Other Stocks That Could Pop on Earnings This Week]

For the preceding third quarter, Intel earned 60 cents a share on revenue of $13.5 billion.

INTC closed Thursday's regular trading session at $22.68. The stock has been trading in a 52-week range between $19.23 and $29.27.

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