What analysts say:
- Buy, sell, or waffle? Wall Street seems doubtful. In contrast to the uber-bullish sentiment surrounding Intel, a bare (and bearish) half-dozen analysts recommend buying AMD today. Eighteen more rate the stock a "hold," while eight analysts recommend selling it.
- Revenue. Even so, these analysts predict that AMD will report $0.61 billion in Q3 sales, up 16% from last year.
- Earnings. Analysts forecast a whopping $0.06 per share.
What management says:
That's certainly better than the $0.18 per share AMD lost last year, and last quarter's $0.06 loss per share -- though in that case, the company's non-GAAP earnings actually totaled $0.11 per share. Also, AMD has warned us to expect a 1% to 4% sequential drop in revenues tomorrow.
True, AMD wasn't alone in issuing an earnings warning; fellow tech icons NVIDIA
What management does:
Let's not forget what AMD has accomplished. It is profitable -- and not just because of last year's $1.25 billion litigation settlement with Intel. While that's bucked up AMD's net, the improvements the company notched on gross and operating margins are all AMD.
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.
One Fool says:
However, I'd really like to see more free cash flow out of AMD. Sadly, that still doesn't seem in the cards. Unlike Intel or graphics rival NVIDIA – or mobile processing up-and-comers Texas Instruments
I'd say it can't -- but I could be wrong. After the news comes out, please feel free post your jeers here tomorrow. I promise to accept them humbly
Intel is a Motley Fool Inside Value pick. NVIDIA is a Motley Fool Stock Advisor choice. The Fool has written a bull call spread on Cisco Systems. Motley Fool Options has recommended buying calls on Intel. The Fool owns shares of Intel, Qualcomm, and Texas Instruments.
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