Advanced Micro Devices
The 10-second takeaway
For the quarter ended June 30 (Q2), Advanced Micro Devices met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Advanced Micro Devices chalked up revenue of $1.41 billion. The 29 analysts polled by S&P Capital IQ predicted revenue of $1.41 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The 30 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS of $0.05 for Q2 were 38% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 50 basis points worse than the prior-year quarter. Operating margin was 5.4%, 130 basis points worse than the prior-year quarter. Net margin was 2.6%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $0.46.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,086 members out of 3,736 rating the stock outperform, and 650 members rating it underperform. Among 593 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 454 give Advanced Micro Devices a green thumbs-up, and 139 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advanced Micro Devices is hold, with an average price target of $8.58.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.