Market Discoverer

Investment Idea for US and Hong Kong Market


A Thorough Financial Analysis of Intel Corporation (INTC)

Intel Corporation (INTC) is a pioneer in the industry, developing world-changing technologies that make economic change possible and stimulates lives. Driven by Moore’s Rule, they constantly seek to improve semiconductor design and production to better solve the greatest problems of their consumers. They unlock the power of data to turn enterprise and community for the better by embedding information in the cloud, web, edge, and any kind of computer network.

How do they generate revenue and how much? (Q3, 2020)
They generate a large majority of their sales from goods of the platform, which are their core products and are regarded as one product type. They provide platform items, including a microcomputer and chipset that integrates different technologies. Platform goods are used throughout their IOTG, CCG, and DCG operating divisions in different form factors. It is possible to merge their semi-platform or complementary products with platform products to form robust platform solutions to address consumer demands.

The corporation generated $8.2 billion in cash from operational activities and paid allowances of $1.4 billion in the 3rd quarter. In August, Intel launched increased share buyback (ASR) contracts for $10.0 billion of its common shares in accumulation. Following the resolution of these deals, as a result of the $20.0 billion expected equity buybacks revealed in October 2019, Intel will have bought back a total of nearly $17.6 billion in stock. Intel plans to complete that $2.4 billion deficit and, as prices recover, revert to historical asset growth activities.

Here lies the summary of Intel’s performance in Q3 2020:

  • Third-quarter sales totaled $18.3 billion, down 4% YoY, was beyond July estimates. Data-centered revenue decreased by 10%, whereas PC-centered revenues were stronger than expectations, up 1% YoY.
  • Based on Generally Accepted Accounting Principles, EPS in the 3rd quarter was $1.02, falling 25% YoY. The non-GAAP EPS was off 22% YoY ($1.11), above forecasts for July.
  • To date, $25.5 billion in funds from activities and $15.1 billion in operating cash flow, with $4.2 billion in dividends, have been generated annually.
  • Significant raise from July forecasts of full-year sales and earnings targets. Anticipating 5% top-line development Year-over-Year in 2020 along with $75.3 billion in yearly revenue- $4.90 non-GAAP EPS and $4.55 GAAP EPS.

Q3 revenues were ahead of previous forecasts, led by sustained strength in notebook revenues, which further countered COVID-driven economic challenges impacting large portions of the market.

Investment Disclaimers

Join 80 other subscribers

%d bloggers like this: