Before the close of U.S. local time on January 21, Intel officially released its fourth quarter and full-year financial reports for 2020.
The financial report shows that Intel’s PC chip sales unexpectedly rebounded strongly due to the new crown epidemic, mainly because more people bought notebooks for home office and home learning, and sales of powerful gaming PCs also performed strongly.
Intel’s PC chip sales surged 33% in the quarter, and a report from market research firm IDC also showed that global PC shipments rose 26% in the quarter, the largest single-quarter increase in 10 years. Driven by the strong personal computer business, Intel’s revenue and profit in the fourth quarter exceeded expectations.
Affected by the news of rising financial data, as of the close of trading on January 21, Intel’s stock price rose more than 6% to close at $62.46.
According to official data, revenue in the fourth quarter was $20 billion, exceeding market expectations by $17.5 billion; Intel’s adjusted earnings per share in the fourth quarter were $1.52, significantly better than the expected value of $1.10; fourth-quarter net profit Profit of 5.9 billion US dollars, the market expected 4.239 billion US dollars. Intel also raised its cash dividend by 5% to $1.39 per share.
The company’s earnings per share in 2020 were $4.94, compared with market expectations of $4.56 and $4.71 in the same period last year; revenue was $77.9 billion, compared with market expectations of $75.332 billion, compared with $71.965 billion in the same period last year; net profit was 209 USD 19.264 billion, compared with USD 21.048 billion in the same period last year.
In addition, Intel’s announced performance guidance also exceeded market expectations. Intel expects that in the first quarter of 2021, its revenue will reach about 17.5 billion US dollars, earnings per share will be 1.1 US dollars, and the market is expected to be 0.95 US dollars. Operating profit margin 30%.
For the early release of the financial report, Intel CFO Davis (George Davis) explained that a hacker stole sensitive financial information from the company’s website on January 21, and the company was forced to release the financial report early. Davis did not provide further details, other than to say that the leak was the result of an illegal act and did not involve any inadvertent disclosure by the company itself.
For the full fiscal year 2020, Intel’s revenue was $77.9 billion, an increase of 8% compared to fiscal 2019’s $72 billion, and operating profit was $23.678 billion, an increase of 7.4% compared to fiscal 2019.
Gross profit margin in fiscal 2020 was 56.0%, down 2.5 percentage points from 58.6% in fiscal 2019; not in accordance with GAAP, Intel’s gross profit margin in fiscal 2020 was 57.6%, compared with 58.6% in fiscal 2019 This is a decrease of 2.6 percentage points from 60.1% in the fiscal year.
In recent years, Intel’s situation has shown a slight downward trend compared with previous years. For the past 30 years, Intel, as the world’s largest chip maker, has dominated the $400 billion chip industry.
In recent years, many US chip companies have outsourced production to other companies, but Intel has insisted on its own production, which they believe can not only improve business conditions, but also produce better chips.
In recent years, however, this strategy has begun to crumble, with the company not only lagging behind TSMC and Samsung Electronics in chip production, but also falling behind.
Last year, Intel ceded the title of “America’s Most Valuable semiconductor Company” to Nvidia. Because the company has failed to mass produce more advanced chips ahead of its rivals, Nvidia has outsourced much of the production to TSMC. Intel’s production setbacks directly led to its market share being taken away by competitors, which also brought huge losses to Intel’s shareholders. Shares of the company are down 17% in 2020.
In response, in December, activist hedge fund Third Point urged Intel’s board to make several changes to the company, including considering whether to outsource chip production or spin off parts of the business.
At present, Intel’s outsourcing plan has been implemented: most of the orders are placed to TSMC, and a small part of the orders are placed to Samsung.
Intel replaced CEO Bob Swan last week (January 13th) with the appointment of former VMware CEO Pat Gelsinger to improve business conditions. new CEO. The appointment will take effect on February 15. After the news was released, the stock price ushered in a rise.