Wednesday 6 May 2015

Intel report Q1 2015

Intel, Q1, 2015, front page

The Americans are always very quick with reporting and this time Intel was the first one out with their Q1 report. As always lately I have not observed or taken notice of the market response based on the release of the report and maybe it is also better so since in the end daily share price movements means very little to me.

To view the report in full please click here and for my previous summary please see the Intel annual report 2014 and to find out more concerning Intel then please go to analysis of Intel 2015.

Let us start off by taking a look at the highlights for Intel. The revenue were flat which of course is not good but they have managed to improve their margin as well as managed to decrease their tax rate which leaves a bit more for us shareholders in the end of Q1 2015 compared to Q1 in 2014. Since they are also buying back shares we therefore end up with a slightly higher increase in earnings per share than what the increase is in net income.

Intel, Q1, 2015, highlights

Below you will find the financial statement and there they also bring in Q4 2014 for comparison. This paints a more grim picture for us and we see that the take off that we observed during Q2, Q3 and Q4 in 2014 of higher sales within the Client Computing Group as well as the Data Center Group have completely fallen back again. This I do not like at all! Research is up and marketing is down that I like to see since often it is better to show then to just tell.

Intel, Q1, 2015, financial statement

Conclusion: I see some hiccups in the take-off of Intel and I do not like that. I hope that it is quarter based with companies still holding tight to their new budget for the year in fear of spending too much too early. If I see another quarter like this then I will start to be a bit concerned. I will remain shareholder in Intel and I see no reason to sell but also no reason to buy.

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