Intel Stock Performance Staggers in Q1

Intel has had a strong FY14, but its performance has staggered in Q1 FY15.

Intel Corp (INTC) had an extremely strong fourth quarter where its fiscal year of 2014 had also been exemplary. According to the company’s earnings report published two months ago, Intel’s 2014 marked several achievements for the company.

According to the company’s position at NASDAQ stock exchange, the company’s shares had been trading at $37 per share. The company’s position thus had become extremely strong in a short passage of time marking their triumph.

These great achievements paved the company’s way for a fairly strong first quarter in 2015. Many analysts believed that the revenues of the company will quadruple and they will excel to greater heights.

Sadly, the company experienced a massive boom from medium and small sized businesses that altered their strategies to redeem their position. For instance, Microsoft PC’s will not pave their way to redemption igniting concerns for the organization. This resulted in the waning of the company’s exuberance and Intel stock slashed resulting in their downfall. This can create resonance among all the investors of the company.

Mostly it has been observed that whenever a company lowers the guidance of earnings, similar to what Intel experienced, the stocks of the company experience a hit, However, the problem with Intel’s stocks revolved around the revision. For instance, the company was expected to generate revenues that compounded up to $13.7 billion in Q1. This would have resulted in a massive improvement for them considering their performance in Q1 of 2014. However, now the company is focusing on more of a give and take the position by forecasting revenues of $12.8 billion.

Windows XP refreshing was not the only reason for the company’s downfall, but another reason for this depreciation accounts for the dollar like intervention many companies experienced. The company’s gross margins are expected to be 60% since the sales have been exceptional where spending’s are also said to be $4.9 which they forecasted earlier.

Intel has succeeded in managing its overhead and also maintaining margins, but a drop of $900 million in terms of revenues has caused immense disruption making it hard for investors to digest. But the company is not just about operating software and currency exchange rates but it has a lot more to offer.

The company needs to boost up the process and come up with a strategy to counter what has happened. They had a good start in 2014, but the start of 2015 did not bear much fruit for them where a massive loss resulted in the decline of the company’s glory. however, the company will redeem itself making it a good time to opt for it.