Computer processor maker AMD (NASDAQ: AMD) will be reporting earnings this Tuesday after market hours. Here’s what investors should know.
AMD beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $7.44 billion, up 35.9% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AMD’s revenue to grow 27.3% year on year to $7.43 billion, improving from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMD has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.5% on average.
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. Qorvo’s revenues decreased 7.7% year on year, beating analysts’ expectations by 5.3%, and Penguin Solutions reported revenues up 7.9%, falling short of estimates by 1.4%. Qorvo traded up 2.3% following the results while Penguin Solutions was also up 10.6%.
Read our full analysis of Qorvo’s results here and Penguin Solutions’s results here.
Investors in the processors and graphics chips segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. AMD is up 26.6% during the same time and is heading into earnings with an average analyst price target of $155.96 (compared to the current share price of $170.69).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
