How does Intel’s financial report attract investors?
On April 24th, Beijing time, Intel released its first quarter financial report for 2020. From the financial report, Intel maintained a certain year-on-year growth in revenue and net profit. Although the first-quarter results exceeded Wall Street analysts’ expectations, due to the impact of the epidemic on Intel ’s cancellation of its full-year outlook, adjusted earnings per share in the second quarter fell short of expectations, and the suspension of repurchases and other measures led to a sharp drop in its after-hours stock price of nearly 6%.
Before the release of this new financial report, the world is facing the impact of new coronary pneumonia, which has more or less brought some uncontrollable impact on Intel ’s business. Judging from the previous stock price, Intel’s performance this year is much better than the benchmark Philadelphia Semiconductor Index, which rose 0.42% during the year, which also seems to indicate that investors are optimistic about Intel’s financial performance this quarter. Just because the epidemic has not yet reached an inflection point, many investors are still worried about the subsequent development of the global semiconductor industry.
According to Intel’s stock price performance, although the stock price has dropped a lot due to the meltdown of US stocks, it is still steadily recovering. It is one of the few companies that has grown against the trend during the epidemic. How does the core data of this newly released financial report perform? What impact did the epidemic have on Intel’s business, and why did the stock price decline after the market’s unexpected performance?
Revenue increased by 23% year-on-year, net profit increased by 42% year-on-year
The report shows that Intel ’s first-quarter revenue was US $ 19.8 billion, an increase of 23% from US $ 16.1 billion in the same period last year; net profit was US $ 5.7 billion, an increase of 42% from the US $ 4 billion in the same period last year.
After the financial report was published, as of the time the article was published, Intel ’s after-hours stock price was $ 55.50, after-hours stock price fell 6.00%, and the market value was $ 252.722 billion.
According to division, Intel Customer Computing Group ’s first quarter netRevenue was US $ 9.775 billion, compared with US $ 8.586 billion in the same period last year; Data Center Group’s first quarter revenue was US $ 6.993 billion, compared with US $ 4.902 billion in the same period last year; Internet of Things Group’s first quarter revenue It was 1.137 billion US dollars, compared with 1.119 billion US dollars in the same period last year.
Non-variable storage solutions group revenue was US $ 1.338 billion, compared with US $ 915 million in the same period last year; programmable solutions group revenue was US $ 519 million, compared with US $ 486 million in the same period last year ; All other business revenue in the first quarter was $ 66 million, compared with $ 53 million in the same period last year.
Performance outlook:
Intel expects revenue for the second quarter of fiscal 2020 to be approximately US $ 18.5 billion; operating margin is approximately 28%, operating margin that is not in accordance with US GAAP is approximately 30%; tax rate is approximately 13%, not The U.S. GAAP tax rate is also about 13%; earnings per share is approximately US $ 1.04, and earnings per share that are not in accordance with US GAAP are approximately US $ 1.10, exceeding analyst expectations.
Like many other companies, Intel withdrew its full-year performance outlook due to the uncertainty of the epidemic, which shows that Intel will still have some changes in its performance revenue in 2020. At the same time, based on consideration of the impact of the epidemic, chip giant Intel announced the suspension of stock repurchases on March 24, and the unfinished part of the $ 20 billion stock repurchase plan announced in October last year.
Before the release of the new financial report, Intel disclosed that they repurchased 71 million shares in the first quarter of this year at a cost of $ 4.2 billion. Counting the $ 4.2 billion of stock repurchases in the first quarter, Intel ’s $ 20 billion of stock repurchases is not yet half completed.
The company’s suspension of stock repurchases indicates that Intel is preparing ahead of time for business uncertainties that may arise in the future, so that it has more cash in hand. Intel’s approach may also accelerate some investors’ concerns about their future performance. These factors are likely to be an important reason for Intel’s after-hours stock price decline.
Although the overall performance of Intel ’s financial results for the first quarter did not bring much drag, the epidemic has not yet reached an inflection point, and there will be some uncertainties in the subsequent development of Intel. Returning to the financial results for the quarter, what is Intel’s overall performance?
The PC business recovers strongly under the epidemic, and the computer business growth performance exceeds market expectations
