Wednesday 21 January 2015

Intel annual report 2014

Annual, report, Intel, 2014, front page

Intel arrived last week with their press release for the annual results. I read it and then I decided to wait until the fancy annual report arrived whcih i thought would come a couple of days later. Still it is not out and since I have with some matters little patience I decided to once again report based on the press release. The market started to hang their lips due to the report and upon release the share price dropped by around -4% but the very next day it was traded at the same price as before the report release.

If you want to read the full report then please click here. For the previous summary by me please click on Intel report Q3 2014 and to find out more about Intel then please visit analysis of Intel 2014.

From my point of view the annual report from Intel was excellent! As can be seen in the table below Intel managed to increase their revenue to 55.9 billion USD which was around 6% higher than in 2013. The earnings for the year ended up at 11.7 billion USD which was 22% higher than in 2013. So the market wanted even higher earnings and revenue but I as a shareholder am happy with what I got which was 2.31 USD per share.

Income statement, Intel, annual, 2014

If we look into their segments then it is still very clear that the cash cow is still working and even improved during 2014 with a small increase in revenue but a nice jump up in operating income for the PC Client Group. The same goes for the Data Center Group with significant increase in both revenue as well as operating income! Mobile is simply bad and Intel is still taking heavy costs to not loose market shares in that segment and the same goes for All other business.

Segments, Intel, annual, 2014, report

Conclusion: It was a good year by Intel which came to a large extent from the classical business of processors in PCs and in Servers did very well as well as (or maybe due to...) the release of a new operating systems. Since some time now I have been thinking about what to do with Intel and I will have to make the new analysis with these updated figures before I really make my decision.

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