Thursday 16 July 2015

Intel report Q2 2015

Inte, Q2, 2015, report, front page

Intel is out with their Q2 report for 2015. Things have been, and by the look of it, will continue to be difficult for Intel. The thing I love about Intel thought is that they keep making money even in troubled times and I hope that they will keep doing so for many more years even though the market today does not seem to believe so.

To view the report in full please click here and for my previous summary please see the Intel report Q1 2015 and to find out more concerning Intel then please go to analysis of Intel 2015.

The first thing that disturbed me can be seen here in the key figure summary below and it concerns the tax rate. I do not like when companies pay less taxes and at least for me in my company those tax invoices still arrives and there is a risk of them appearing at a bad moment. Besides from that which I convert to that they had -20% earnings in Q2 well... things are definitely not good but also not as bad as one could imagine reading all information regarding Intel being beaten here and there.

Intel, Q2, 2015, key figures

This time we take a look on the segments report and especially for the running six months then we see that CCG is significantly down, DCG is significantly down, IoTG is flat, Software flat and All other is up by a little. At the moment Intel is alive due to still having high margins on their products, buying back shares which I find fully ok at a P/E of 12.5 and this gives an improving EPS and that they have managed to decrease their costs.

Intel, Q2, 2015, segments

Looking at the All other that actually improved in terms of revenue well... below the line that part makes a 700 million USD loss only in Q2 so I think very little of their revenue increase.

Conclusion: It keep being difficult for Intel and it is now being traded at a P/E of 12.5 so the market has no high hopes for the future of Intel by the look of things. I on the other hand think that Intel will make it out on the other side. I took a look at the figures of AMD the other day and that did not impress me at all. Right now I hope that they will go belly up and that Intel will step into their small market share (5.5 billion USD) to get a bit of a breather on Qualcomm and ARM. I will keep my shares in Intel for now.

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