Computer processor maker AMD (NASDAQ:AMD) will be reporting results tomorrow after the bell. Here’s what to expect.
AMD beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $5.84 billion, up 8.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a significant improvement in its gross margin.
Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AMD’s revenue to grow 15.8% year on year to $6.71 billion, improving from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMD has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.
Looking at AMD’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SMART’s revenues decreased 1.7% year on year, missing analysts’ expectations by 4.3%, and Micron Technology reported revenues up 93.3%, topping estimates by 1.4%. SMART’s stock price was unchanged after the results, while Micron Technology was up 14.6%.
Read our full analysis of SMART’s results here and Micron Technology’s results here.
Investors in the semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. AMD is down 4.8% during the same time and is heading into earnings with an average analyst price target of $188.06 (compared to the current share price of $156.15).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.