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Intel stock sinks on earnings

Yahoo Finance's Jared Blikre breaks down Intel's latest quarterly earnings.

Video transcript

ADAM SHAPIRO: Got to get to-- we've got Jared standing by. He's got Intel earnings. What have they got?

JARED BLIKRE: That's right. It was a beat on the top line and a miss on the bottom line. You can see the stock's down 2% in after hours trading. It was down as much as 4%. Here are the numbers. We have revenue for the quarter coming in at 18-- actually, excuse me, this is a projection for their first quarter revenue. They expect it to be $18.3 billion. That's higher than the estimate for $17.67 billion. They're seeing first quarter adjusted EPS at $0.80. But that was lower than the estimate of $0.86.

Now for the reporting quarter, fourth quarter-- excuse me, fourth quarter revenue came in at $20.5 billion. The estimate was for lower, $18.33 billion. And also their fourth quarter adjusted EPS, $1.09. The estimate was for lower at $0.90. So originally, I misspoke. It was their outlook where we had that bottom line number that was missing expectations. So the board has also declared a quarterly dividend of $0.365 per share. That's a 5% boost to that quarterly cash dividend. They're also seeing their first quarter EPS at $0.80. That's that number once again.

And also going down the line here, their Mobileye revenue, this is a unit that they're considering offloading. They've already made that decision as part of Pat Gelsinger's turnaround strategy. That came in at $356 million. Estimate was for a $366.6 million. But it's really their PC revenue. That came in at $10.16 billion. So a lot of attention on this.

Here's a number that might catch investors' attention. The gross margin for the fourth quarter coming in at 53.6% and their projection for the first quarter of revenue, that's in the current quarter, 49%. And it used to be that used to be a number that was in the 60s, but not now during their turnaround strategy.

Also, investors are noting that on the call today, their guidance might be a little bit light because they are having an investor day about three weeks in the future, February 17, so might be a little bit light on the color as they execute their plan here, guys. So it was a beat on both the top and bottom lines, but the stock here under a little bit of pressure, given the outlook.

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