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Advanced Micro Devices Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Advanced Micro Devices (NYSE: AMD) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), Advanced Micro Devices beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped to a loss. GAAP loss per share shrank.

Gross margins contracted, operating margins dropped, net margins grew.

Revenue details
Advanced Micro Devices logged revenue of $1.09 billion. The 24 analysts polled by S&P Capital IQ predicted revenue of $1.05 billion on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $1.59 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.13. The 22 earnings estimates compiled by S&P Capital IQ anticipated -$0.17 per share. Non-GAAP EPS were -$0.13 for Q1 versus $0.12 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q1 versus -$0.80 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.9%, 520 basis points worse than the prior-year quarter. Operating margin was -9.0%, much worse than the prior-year quarter. Net margin was -13.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is -$0.12.

Next year's average estimate for revenue is $4.71 billion. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,101 members out of 3,781 rating the stock outperform, and 680 members rating it underperform. Among 577 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 435 give Advanced Micro Devices a green thumbs-up, and 142 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 $2.83.

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