AMD (AMD) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/10/31 5:00 am EDT

Computer processor maker AMD (NASDAQ:AMD) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter AMD reported revenues of $6.55 billion, up 70.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in gross margin but underwhelming revenue guidance for the next quarter.

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This quarter analysts are expecting AMD's revenue to grow 31.8% year on year to $5.68 billion, slowing down from the 53.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

AMD Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing 27 downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.02%.

Looking at AMD's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Allegro MicroSystems delivered top-line growth of 22.7% year on year, beating analyst estimates by 5.61% and Intel reported revenue decline of 20% year on year, exceeding estimates by 0.19%. Allegro MicroSystems traded up 5.68% on the results, Intel was up 1.41%. Read our full analysis of Allegro MicroSystems's results here and Intel's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 2.19% over the last month. AMD is down 7.54% during the same time, and is heading into the earnings with analyst price target of $92.60, compared to share price of $61.10.

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