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AMD (AMD) Reports Earnings Tomorrow. What To Expect


Adam Hejl /
2022/05/02 7:10 am EDT
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Computer processor maker AMD (NASDAQ:AMD) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter AMD reported revenues of $4.82 billion, up 48.7% year on year, beating analyst revenue expectations by 6.84%. It was a stunning quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

Is AMD buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting AMD's revenue to grow 61.8% year on year to $5.58 billion, slowing down from the 92.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.

AMD Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 5.65%.

Looking at AMD's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Qualcomm delivered top-line growth of 40.6% year on year, beating analyst estimates by 5.32% and Intel reported revenue decline of 6.7% year on year, exceeding estimates by 0.16%. Qualcomm traded up 4.3% on the results, Intel was down 4.1%. Read our full analysis of Qualcomm's results here and Intel's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 11.6% over the last month. AMD is down 21.7% during the same time, and is heading into the earnings with analyst price target of $143.5, compared to share price of $86.3.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.