Intel Starts Off Earnings Season For Chip-Maker Group With A Thud

Intel Corporation (NASDAQ: INTC) shares have tumbled 6 percent as fourth-quarter results apparently disappointed.

"Apparently" because the figures -- both earnings and sales and the forward-looking guidance -- initially seemed stronger than Wall Street analysts had been anticipating.

The maker of digital technology platforms reported quarterly net income of $3.6 billion, or earnings of $0.74 per share on sales of $14.9 billion. The bottom-line figure was up 16 percent on a sequential basis and flat year-over-year. Sales, meanwhile, rose 3 percent from the third quarter and 1 percent from the same quarter in 2014.

Analysts had been expecting Intel to report fourth-quarter EPS of $0.63 on sales of $14.8 billion.

The company's release also showed an increased quarterly dividend, from $0.24 per share to $0.26 per share.

Intel CEO Brian Krzanich said the quarterly numbers "marked a strong finish to the year." Looking ahead to the rest of 2016, he said, "This year, we'll continue to drive growth by powering the infrastructure for an increasingly smart and connected world."

First-quarter non-GAAP sales are expected to fall in the range of $13.6 billion to $14.6 billion, versus the current analyst estimate of $13.86 billion.

2016 sales should grow in the mid- to high-single-digits range, Intel said.

Several peers which could see a sympathy move following the Intel report include Advanced Micro Devices, Inc. (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA).

To check out a short history of Intel's earnings, and to see an expected schedule for the company's upcoming quarterly results, visit Benzinga's Earnings Calendar.