Computer processor maker AMD (NASDAQ: AMD) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
AMD beat analysts’ revenue expectations last quarter, reporting revenues of $10.25 billion, up 37.8% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AMD’s revenue to grow 47.6% year on year, improving from the 31.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AMD has a history of exceeding Wall Street’s expectations.
Looking at AMD’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Penguin Solutions reported revenues up 47.6%, topping estimates by 17.5%. Intel traded down 7.9% following the results while Penguin Solutions was up 25.1%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the processors and graphics chips stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 12.7% on average over the last month. AMD is down 14.5% during the same time and is heading into earnings with an average analyst price target of $579.11 (compared to the current share price of $472.12).
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