Advanced Micro Devices
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Advanced Micro Devices met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Advanced Micro Devices notched revenue of $1.27 billion. The 24 analysts polled by S&P Capital IQ hoped for revenue of $1.27 billion on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $1.69 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 -$0.20. The 28 earnings estimates compiled by S&P Capital IQ averaged -$0.16 per share. GAAP EPS were -$0.21 for Q3 versus $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.9%, 1,380 basis points worse than the prior-year quarter. Operating margin was -10.1%, 1,830 basis points worse than the prior-year quarter. Net margin was -12.4%, 1,810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $5.57 billion. The average EPS estimate is $0.01.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,076 members out of 3,749 rating the stock outperform, and 673 members rating it underperform. Among 593 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 435 give Advanced Micro Devices a green thumbs-up, and 158 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 $4.74.
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