Intel takes Wall Street by surprise


SAN FRANCISCO -- Cementing its position as one of the nation's leading high-technology companies and the largest semiconductor maker in the world, Intel Corp. yesterday reported profits and revenues that far exceeded Wall Street expectations.

The results, driven by runaway sales of personal computers that predominantly use Intel chips, sent Intel's stock soaring $8.125 yesterday, closing at $110.125 in over-the-counter trading.

Just three weeks ago, Intel had advised analysts to raise their earnings estimates, but yesterday's figures exceeded even the revised data by a considerable margin.

For the fourth fiscal quarter, which ended Dec. 26, Intel earned $428.6 million, or $1.97 a share, more than double the $188.7 million, or 90 cents a share, it reported in the comparable period a year earlier. Sales rose 54 percent, to $1.86 billion, from $1.21 billion in the fourth quarter of 1991.

Intel's phenomenal earning power derives from the fact that it sets the standard for PC chip design. For the year, Intel earned $1.07 billion, or $4.97 a share, up 30 percent from $818.6 million, or $3.92 a share, in 1991. Sales rose 22 percent, to $5.84 billion, from $4.78 billion in the previous year. A regular quarterly dividend was initiated with a payment of 10 cents a share on Dec. 1, 1992.

Copyright © 2021, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad