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Intel’s Shares Fall As Growth in Key Business Slows

January 14, 2016, 10:19 PM UTC
Intel Reports Quarterly Earnings
SANTA CLARA, CA - JANUARY 16: The Intel logo is displayed outside of the Intel headquarters on January 16, 2014 in Santa Clara, California. Intel will report fourth quarter earnings after the closing bell. (Photo by Justin Sullivan/Getty Images)
Photograph by Justin Sullivan—Getty Images

Intel reported a quarterly profit that beat analysts’ estimates but shares fell on concerns about slowing growth in its highly profitable data center business.

The world’s largest chipmaker’s shares (INTC) fell 2.7% to $31.85 in after-market trading on Thursday.

Revenue in its data center business grew 4% to $4.31 billion in the fourth quarter ended Dec. 26 from the third quarter.

Revenue in the business had risen 8% in the third quarter from the second.

Analysts on average had expected data center revenue of $4.42 billion, according to a Jefferies note ahead of the results.

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Revenue from its mainstay PC business fell about 1% to $8.76 billion from a year earlier.

The company’s net income fell to $3.61 billion from $3.66 billion.

On a per share basis, earnings were flat at 74 cents.

Net revenue rose to $14.91 billion from $14.72 billion.

The fourth quarter of 2015 marked the fifth consecutive quarter of worldwide PC shipment decline, according to Gartner.

Analysts on average had expected a profit of 63 cents per share and revenue of $14.80 billion, according to Thomson Reuters I/B/E/S.