Intel Corporation (INTC), Johnson & Johnson (JNJ) Beat Street Estimates

The shares of Intel Corporation (NASDAQ:INTC) and Johnson & Johnson (NYSE:JNJ) increased today after both companies reported quarterly financial results that beat the consensus estimates of Wall Street analysts.

Intel’s financial results

Intel Corporation (NASDAQ:INTC), the largest chip maker worldwide gained nearly 2% to $27.20 per share during the extended hours trading after reporting a profit of $1.98 billion or $0.38 earnings per share  for the first quarter of the current fiscal year. Its revenue was $12.8 billion.

The financial results of the chipmaker outperformed the $0.37 earnings per share and matched the $12.8 billion revenue consensus estimates of analysts polled by Bloomberg. During same quarter a year ago, Intel Corporation (NASDAQ:INTC) generated $2.05 billion profit or $0.40 earnings per share on $12.6 billion revenue.

According to the company its Data Center Group recorded $3.1 billion revenue, up by 11% year-over-year while its PC Client Group’s revenue declined 8% to $7.9 billion sequentially. Intel’s Internet of Things Group and Mobile Communications Group also dropped 10% to $482 million and 52% to $156 million, respectively. The company’s software and services group’s operating income declined 6% to $553 million.

In a statement, Brian Krzanich, CEO of Intel Corporation (NASDAQ:INTC) said, “In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014.

For the next quarter, the company expects to generate approximately $13 billion revenue (plus or minus $500 million) and a gross margin of about 63% (plus or minus 2%).

Johnson & Johnson financial performance

On the other hand, the stock price of Johnson & Johnson (NYSE:JNJ) closed at $99.20 per share, up by more than 2% today. The stock increased further by $0.24 to $99.44 per share after hours. The increase was driven by its solid financial performance for the first quarter.

Johnson & Johnson (NYSE:JNJ) posted $4.7 billion net earnings or $1.64 diluted earnings per share on $18.1 billion revenue for the first quarter of this year. Excluding special items, the company recorded $4.4 billion net earnings or $1.54 diluted earnings per shares, which is higher than the $1.48 diluted earnings consensus estimate of analysts.

In a statement, Alex Gorsky, chairman and CEO of Johnson & Johnson (NYSE:JNJ) said the company “delivered strong first-quarter results driven by successful new product launches and the continued growth of key products.”

“Our talented colleagues around the world continue to bring meaningful innovations to patients and customers, addressing significant unmet needs. We also advanced our near-term priorities and long-term growth drivers, positioning us well to deliver sustainable results,” added Gorsky.

Johnson & Johnson (NYSE:JNJ) said its Worldwide Consumer sales declined 3.2% to $3.6 billion. Its revenue from Pharmaceuticals increased 10.8% to $7.5 billion while its sales in Medical Devices and Diagnostics remained flat at $7 billion.