Intel closes 2016 with record revenue, Q4 2016 profit of $3.9 billion

Intel's fourth-quarter earnings were send over the wire about half an hour ago. The chip giant ended a record year with a record quarter, fourth-quarter revenue came in at $16.4 billion, bringing the 2016 total to a whopping $59.4 billion.

Net income for the fourth quarter was $3.6 billion on a GAAP basis and $3.9 billion on a non-GAAP basis with adjusted EPS of $0.79. Intel beat expectations as Wall Street consensus was EPS of $0.75 on revenue of $15.75 billion.

For 2017, Intel projects flat revenue of $59.4 billion and earnings per share of $2.80, plus or minus 5 percent, versus analyst estimates of revenue of $60.91 billion and EPS of $2.81. For Q1 2017, Intel forecasts revenue of $14.8 billion, plus or minus 500 million, and EPS of $0.65, plus or minus 5 cents. This compares with Wall Street estimates of $14.53 billion in revenue and EPS of $0.61.

I'll paste the highlights below, the full earnings report can be viewed over here. At press time, Intel shares are trading at $37.65 (+0.24%) in the after-hours session.

Intel Corporation today reported full-year revenue of $59.4 billion, operating income of $12.9 billion, net income of $10.3 billion and EPS of $2.12. Intel reported non-GAAP revenue of $59.5 billion, operating income of $16.5 billion, net income of $13.2 billion, and EPS of $2.72. The company generated approximately $21.8 billion in cash from operations, paid dividends of $4.9 billion and used $2.6 billion to repurchase 81 million shares of stock.

For the fourth quarter, Intel posted revenue of $16.4 billion, operating income of $4.5 billion, net income of $3.6 billion and EPS of 73 cents. Intel reported non-GAAP operating income of $4.9 billion, net income of $3.9 billion, and EPS of 79 cents. The company generated approximately $8.2 billion in cash from operations, paid dividends of $1.2 billion, and used $533 million to repurchase 15 million shares of stock.

“The fourth quarter was a terrific finish to a record-setting and transformative year for Intel. In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities,” said Brian Krzanich, Intel CEO. “I’m pleased with our 2016 performance and confident in our future.”

Full-Year 2016 Business Unit Trends*

Client Computing Group revenue of $32.9 billion, up 2 percent from 2015

Data Center Group revenue of $17.2 billion, up 8 percent from 2015

Internet of Things Group revenue of $2.6 billion, up 15 percent from 2015

Non-Volatile Memory Solution Group revenue of $2.6 billion, down 1 percent from 2015

Intel Security Group revenue of $2.2 billion, up 9 percent from 2015

Programmable Solutions Group revenue of $1.7 billion

* The first quarter of 2016 had 14 weeks of business versus the typical 13 weeks, as the company realigned its fiscal year with the calendar year.

Q4 Business Unit Trends

Client Computing Group revenue of $9.1 billion, up 4 percent year-over-year

Data Center Group revenue of $4.7 billion, up 8 percent year-over-year

Internet of Things Group revenue of $726 million, up 16 percent year-over-year

Non-Volatile Memory Solution Group revenue of $816 million, up 25 percent year-over-year

Intel Security Group revenue of $550 million, up 7 percent year-over-year

Programmable Solutions Group revenue $420 million