Intel shares drop after fourth quarter margins slip

Intel unveiled better-than-expected fourth quarter earnings and sales after the close of markets on Thursday, but guided towards lower gross margins for the following three months, sending its shares promptly lower.

The chip-making giant said quarterly earnings hit 74 cents a share on sales of $14.9bn.

That was ahead of analysts' forecasts for profits of 63 cents and revenues of $14.81bn.

For the next three-month period, the company forecast sales would slip, as they often do at the start of each year after the holiday season, to $14.1bn.

That was better than the $13.91bn forecast by analysts.

However, the semiconductor manufacturer also said gross margins in the seasonally strong fourth quarter retreated from 65.4% in the year ago quarter to 64.3%.

As of 21:37 GMT shares of Intel Corp. were down 3.39% to $31.63.