The report was very well accepted and the share price jumped up around 2.5% in the beginning but the day after there was intense sadness and the stock went back around -4.5%. What can then be the reason for this roller coaster?
Please go here for the full report from Intel (all material comes from there) and to take a look at the previous summary of Q2 then please see Intel report Q2 2014.
Below we have the income statement and it all looks good and fine! Increased revenue, increased operating revenue and increased net income. They also bring up in their highlights that they have spent 4.2 billion USD in a share buyback program during Q3. As you all know I generally like that!
In the table below we take a look at the segments revenue and when we see that the expected dead segment PC Client Group is definitely alive and kicking and keeps bringing home plenty of revenue. Mobile is not doing any good at all and I do mean at all!
If we then finally take a look at the operating income of the segments we see two large issues. Mobile, that brought home 1 million and lost 1 billion. I get that they hunt market share and that they will one day have an excellent product that will make them money but still it looks bad. Secondly the All other that are also losing much more than what they bring home. Maybe it is time to clean out the nest a little...
Conclusion: It was a strong report from Intel but there are also question marks. Personally I do not care about the Mobile part etc but what I did not like at all is the share buyback. Intel spent 4.2 billion of my money on buying back shares for it on the other side only to increase again by handing it out to employees as well as for convertible debt. I do not like that. If you buy back shares then you also burn them since everything else is not in my interest as a shareholder. I will remain as shareholder in Intel for now.
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