FBR Capital Maintains a 'Market Perform' on AMD (AMD); PC Checks Still Sluggish, but AMD May Benefit from Intel Recall Issue
Tweet Send to a FriendGet Alerts AMD Hot Sheet
Price: $3.96 -1.49%
Rating Summary:
5 Buy, 15 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
5 Buy, 15 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade AMD Now!
FBR Capital maintains a 'Market Perform' on AMD (NYSE: AMD), PT $10.
FBR analyst says, "Checks with the top six notebook ODMs have deteriorated of late, with 1Q notebook builds downticking slightly from –10.5% QOQ to –11% QOQ, and with 2Q builds downticking from an optimistic +15% QOQ (which we said was likely to be reduced) to +7% QOQ, worse than expected. While notebook demand could improve, and builds could get ratcheted up by June, our contacts suggest Intel's Sandy Bridge products are not stimulating as much end demand as expected, likely impacting AMD too. For AMD, we think 1Q11 revenues tracked at or above the high end of guidance of flat to slightly down QOQ (versus $1.65B in 4Q and versus the Street's $1.62). That said, original revenue guidance may have been too optimistic with notebook builds set to fall 11% QOQ in 1Q, and with desktop builds likely to fall by 5%–7% QOQ. So, if AMD does achieve the high end of revenue guidance, or potentially better, the upside is likely short term in nature and due to customers turning to AMD for product when Intel's Sandy Bridge was less available due to the chipset bug recall. For 2Q, we think AMD's revenues will fall QOQ given its 14th week in 1Q, Intel (Nadaq: INTC) chipset goodness unwinding, and sluggish desktop builds, still rather unexciting.
For more ratings news on AMD click here and for the rating history of AMD click here.
Shares of AMD closed at $8.79 yesterday, with a 52 week range of $5.53-$10.24.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
FBR analyst says, "Checks with the top six notebook ODMs have deteriorated of late, with 1Q notebook builds downticking slightly from –10.5% QOQ to –11% QOQ, and with 2Q builds downticking from an optimistic +15% QOQ (which we said was likely to be reduced) to +7% QOQ, worse than expected. While notebook demand could improve, and builds could get ratcheted up by June, our contacts suggest Intel's Sandy Bridge products are not stimulating as much end demand as expected, likely impacting AMD too. For AMD, we think 1Q11 revenues tracked at or above the high end of guidance of flat to slightly down QOQ (versus $1.65B in 4Q and versus the Street's $1.62). That said, original revenue guidance may have been too optimistic with notebook builds set to fall 11% QOQ in 1Q, and with desktop builds likely to fall by 5%–7% QOQ. So, if AMD does achieve the high end of revenue guidance, or potentially better, the upside is likely short term in nature and due to customers turning to AMD for product when Intel's Sandy Bridge was less available due to the chipset bug recall. For 2Q, we think AMD's revenues will fall QOQ given its 14th week in 1Q, Intel (Nadaq: INTC) chipset goodness unwinding, and sluggish desktop builds, still rather unexciting.
For more ratings news on AMD click here and for the rating history of AMD click here.
Shares of AMD closed at $8.79 yesterday, with a 52 week range of $5.53-$10.24.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- XBox One and PS4 Could Add $9B in Revenue for AMD (AMD) - Jefferies
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Deutsche Bank Raises PT on NetApp (NTAP) to $48
Create E-mail Alert Related Categories
Analyst CommentsComments
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
Q1 impacted by non-recurring events
Catalina588 on Apr 1, 2011 10:55 AMMark as Spam | Reply to this comment
1. Sandy Bridge anticipation
2. Sandy Bridge chipset hiccup
3. Channel normalization around delayed SB intro and Japan earthquake supply effects
4. Tablets continue to eat netbook low end.
http://technologypundits.com/2011/03/gaming-the-q1-2011-pc-numbers/