Q1 Preview: Can AMD (AMD) Power-Up Results Following Intel Beat?
Tweet
Share
E-mail
Get Alerts AMD Hot Sheet
Price: $548.13 +2.57%
Revenue Growth %: +46.3%
Financial Fact:
Gross margin: 59M
Today's EPS Names:
CCEL, FNGR, FAST, More
Revenue Growth %: +46.3%
Financial Fact:
Gross margin: 59M
Today's EPS Names:
CCEL, FNGR, FAST, More
Join SI Premium – FREE
Advanced Micro Devices (NYSE: AMD) is trading higher today ahead of the Company's first-quarter earnings report, expected out after the market closes. Shares are up 0.8 percent this afternoon.
AMD is expected to report EPS of $0.05 on revs of $1.61 billion. The Sunnyvale, CA-based chipmaker reported EPS of $0.14 with revs of $1.65 billion, beating consensus views calling for EPS of $0.11 and revs of $1.63 billion. Looking back at Q110, AMD produced EPS of $0.09 with revs of $1.57 billion, mixed to the consensus.
Shares gained 1.5 percent through the quarter, to $8.60 at the end of March. Shares are up about 1.2 percent since then, and finished 2010 about 15.7 percent lower.
AMD is trading with a forward P/E of 11.6x FY12 EPS estimates, compared with 46.7x at ARM Holdings (Nasdaq: ARMH), 14.5x at NVIDIA (Nasdaq: NVDA), and 9.8x at Intel (Nasdaq: INTC).
Data from Bloomberg has 10 analysts with a Buy on AMD, 18 with a hold, and six suggesting to Sell. The analyst price target average is $9.55, with a high of $15 and low of $5. Shares have traded in a range of $21.65 - $13.75 over the last 52-weeks.
Brief Summary
Last quarter, AMD guided to first quarter sales which would be flat to slightly lower sequentially. Taking this into consideration, and with sales of $1.65 billion last quarter, a 2 - 3 percent drop would lead to sales of $1.62 - $1.60 billion.
In January, then-CEO Dirk Meyer resigned his position. Barron's warned investors to be cautious on the dip following the news, preferring Intel instead.
With Intel recently reporting a strong first quarter report, investors and traders may be looking for the same out of Advanced Micro Devices. Specifically, microprocessor revenue for Intel increased 19.9 percent year-over-year, signaling increased demand for the product.
Reasoning? Both Intel and AMD have had a "strangle hold" on the CPU market in 2010, with the two combining for 92.4 percent of market share globally. The numbers haven't changed much, but with an increase in one, so follows the other.
In March, it was also reported that AMD stole GPU market share from NVIDIA on the back of Apple (Nasdaq: AAPL) sales.
Finally, AMD still may be a takeover target which could provide additional upside for investors. Earlier in March, sources started floating the idea out there, but nothing has surfaced since. With a current market cap just shy of $6 billion, it would certainly be an asset, though its unlikely Intel would make a bid (litigation, antitrust).
Advanced Micro Devices is expected to release their Q111 earnings on Thursday, April 21, 2011, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
AMD is expected to report EPS of $0.05 on revs of $1.61 billion. The Sunnyvale, CA-based chipmaker reported EPS of $0.14 with revs of $1.65 billion, beating consensus views calling for EPS of $0.11 and revs of $1.63 billion. Looking back at Q110, AMD produced EPS of $0.09 with revs of $1.57 billion, mixed to the consensus.
Shares gained 1.5 percent through the quarter, to $8.60 at the end of March. Shares are up about 1.2 percent since then, and finished 2010 about 15.7 percent lower.
AMD is trading with a forward P/E of 11.6x FY12 EPS estimates, compared with 46.7x at ARM Holdings (Nasdaq: ARMH), 14.5x at NVIDIA (Nasdaq: NVDA), and 9.8x at Intel (Nasdaq: INTC).
Data from Bloomberg has 10 analysts with a Buy on AMD, 18 with a hold, and six suggesting to Sell. The analyst price target average is $9.55, with a high of $15 and low of $5. Shares have traded in a range of $21.65 - $13.75 over the last 52-weeks.
Brief Summary
Last quarter, AMD guided to first quarter sales which would be flat to slightly lower sequentially. Taking this into consideration, and with sales of $1.65 billion last quarter, a 2 - 3 percent drop would lead to sales of $1.62 - $1.60 billion.
In January, then-CEO Dirk Meyer resigned his position. Barron's warned investors to be cautious on the dip following the news, preferring Intel instead.
With Intel recently reporting a strong first quarter report, investors and traders may be looking for the same out of Advanced Micro Devices. Specifically, microprocessor revenue for Intel increased 19.9 percent year-over-year, signaling increased demand for the product.
Reasoning? Both Intel and AMD have had a "strangle hold" on the CPU market in 2010, with the two combining for 92.4 percent of market share globally. The numbers haven't changed much, but with an increase in one, so follows the other.
In March, it was also reported that AMD stole GPU market share from NVIDIA on the back of Apple (Nasdaq: AAPL) sales.
Finally, AMD still may be a takeover target which could provide additional upside for investors. Earlier in March, sources started floating the idea out there, but nothing has surfaced since. With a current market cap just shy of $6 billion, it would certainly be an asset, though its unlikely Intel would make a bid (litigation, antitrust).
Advanced Micro Devices is expected to release their Q111 earnings on Thursday, April 21, 2011, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- ASML Holdings (ASML) Tops Q2 EPS by 59c; offers guidance
- This eVTOL stock just got downgraded at Goldman
- BofA Securities Upgrades Hyundai Motor India (HYUNDAI:IN) to Buy
Create E-mail Alert Related Categories
Earnings, Insiders' BlogRelated Entities
Barron's, EarningsSign 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!
