Advanced Micro Devices
The 10-second takeaway
For the quarter ended June 29 (Q2), 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 contracted to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Revenue details
Advanced Micro Devices logged revenue of $1.16 billion. The 26 analysts polled by S&P Capital IQ looked for revenue of $1.11 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $1.41 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 -$0.09. The 27 earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. Non-GAAP EPS were -$0.09 for Q2 versus $0.06 per share for the prior-year quarter. GAAP EPS were -$0.10 for Q2 compared to $0.05 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 39.5%, 600 basis points worse than the prior-year quarter. Operating margin was -2.5%, 830 basis points worse than the prior-year quarter. Net margin was -6.4%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $1.41 billion. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $5.16 billion. The average EPS estimate is -$0.15.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,145 members out of 3,818 rating the stock outperform, and 673 members rating it underperform. Among 599 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 476 give Advanced Micro Devices a green thumbs-up, and 123 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 $3.43.
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