The chip giant says earnings rose 21% in its latest quarter from year-ago levels.



NEW YORK (TheStreet) -- Intel(:INTC) shares rose more than 2% to $26.17 in late trades Thursday after the Dow component edged past Wall Street's expectations for its fourth-quarter results.

The world's biggest chip maker reported adjusted earnings climbed 21% over last year to 68 cents in the December-ended quarter. Revenue jumped 22% year-over-year to $13.9 billion.

Analysts were expecting Intel to report earnings of 61 cents a share on revenue of $13.7 billion. The company guided for revenue of $13.7 billion in the quarter last month, citing a hard disk drive supply shortage resulting from floods in Thailand that disrupted the personal computer supply chain.

Intel's strong earnings come as the company is trying to move outside its core PC computing business amidst a sagging PC market into new areas.

Intel previewed some of its emerging strategy at CES last week where it showed off super thin and powerful laptops, dubbed Ultrabooks. Intel also announced smartphone deals with Lenovo and Motorola Mobility(:MMI) as the chipmaker tries to shift into powering mobile devices.

The company's PC Client Group--which includes notebook and desktop devices--grew 17% year-over-year to $9 billion, allaying fears that sales of tablets like Apple's(:AAPL) iPad have hurt sales of Intel products.

Looking forward into the first quarter of 2012, Intel expects revenue of $12.8 billion, in line with analyst estimates.

--Written by Olivia Oran in New York.



>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

>To submit a news tip, send an email to: tips@thestreet.com.