Intel posts 28% rise in Q4 profit

Intel reported a 28 per cent increase in fourth-quarter revenue and delivered a financial forecast well ahead of Wall Street …

Intel reported a 28 per cent increase in fourth-quarter revenue and delivered a financial forecast well ahead of Wall Street expectations, sending shares rising today.

Intel said its gross profit margin in the fourth quarter was a record 65 per cent and said the profit margin would range from 59 per cent to 63 per cent in the current quarter.

The company said today net income totaled $2.3 billion, or 40 cents a share, in the three months ended December 26, compared with net income of $234 million, or 4 cents a share, in the year-ago period when the company incurred a $1.1 billion write-down related primarily to its investment in Clearwire Corporation.

Revenue rose to $10.6 billion from $8.2 billion in the year-ago period, and above the Wall Street target of roughly $10.2 billion.

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Intel forecast revenue for the current quarter of $9.7 billion, plus or minus $400 million.

Analysts polled by Thomson Reuters I/B/E/S, on average, expect current-quarter revenue of $9.3 billion.

Shares rose 2.1 per cent to $21.94 in after-hours trading after closing today's regular trading session at $21.48 on Nasdaq.

Reuters