The third quarter for Intel came out last week and it was very well accepted. The price to buy shares in Intel is going up and down based on fear. Fear of Apple, of mobile phones, of ARM, of tablets etc. Not that long ago (in the end of August) it was down around 24 € per share and now it once again back up at around 29 € so +20% in less than two months for a company generating around 10 billion USD in earnings per year. At the moment as an investor one is however not allowed to forget the impact of currencies and the fluctuation between USD and EUR are large.
To view the report in full please click here and for my previous summary please see the Intel report Q2 2015 and to find out more concerning Intel then please go to analysis of Intel 2015.
The financial statement can be seen below and there we see that the revenue is indeed decreasing compared to 2014 but we should not forget that revenue wise 2014 was a good year. What is not so good is that the cost of sales has increased which gives us a much smaller margin. Intel is pushing even more R&D which I hope will seriously pay off because it starts to be a large number! So below the line we have a profit of 7.8 billion USD which should be compared to 8.0 billion last year so we are down around -3%. Looking in terms of per share the difference is flat between 2014 and 2015 due to the share buyback programs that are running.
Conclusion: Intel is still doing ok. There is no rocket take off but there is also not the abyss below them that so many every now and then still thinks. One of my regrets this quarter with Intel is that I did not buy some more when they were down below 24 €. I will remain as a shareholder in Intel.
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