Computer processor maker AMD (NASDAQ: AMD) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
AMD beat analysts’ revenue expectations last quarter, reporting revenues of $10.27 billion, up 34.1% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income 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 32.9% year on year, slowing from the 35.9% increase it recorded in the same quarter last year.
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.
Looking at AMD’s peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 7.2%, beating analysts’ expectations by 9.6%, and Penguin Solutions reported a revenue decline of 6.2%, topping estimates by 0.8%. Intel traded up 23.6% following the results while Penguin Solutions was also up 13.4%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 34.9% on average over the last month. AMD is up 64.3% during the same time and is heading into earnings with an average analyst price target of $307.50 (compared to the current share price of $361.87).
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