Intel reported unexpectedly strong sales for the end of 2020, handily topping its revenue forecast in financial results issues Thursday afternoon.
However, the company said nothing in Thursday’s announcement about the problems plaguing its factory network or its pending decision on whether to outsource advanced manufacturing to Asia. Those issues helped prompt the company to replace its CEO last week.
The company had promised investors a decision on outsourcing this month, but the chipmaker told employees last week that it would likely postpone that until incoming CEO Pat Gelsinger had an opportunity to review the company’s options.
Intel released its results shortly ahead of schedule, just before financial markets closed. Intel shares finished the day up 6.5 percent at $62.46. That’s the stock’s highest point since June.
While Intel’s technology development process is faltering, its sales are unexpectedly strong.
Fourth-quarter sales were $20 billion, flat from a year earlier but well above the $17.4 billion Intel had forecast. Annual sales were $77.8 billion, up from $72 billion in 2019.
Quarterly profits totaled $5.8 billion, or $1.42 a share. That compares to $6.9 billion, $1.58 a share, in the fourth quarter of 2019. Full-year profits were $20.9 billion, $4.94 a share. In 2019, profits totaled $21.0 billion, $4.71 a share.
Intel said it expects sales of $18.6 billion in the current quarter, down from sales of $19.8 billion in the first quarter of 2020. The company did not issue a full-year forecast.
Shares are up 17 percent since Jan. 13, when the chipmaker unexpectedly announced that former Intel chief technology officer Gelsinger will return to the company to replace current CEO Bob Swan.
