Earnings To Watch: AMD (AMD) Reports Q2 Results Tomorrow

Jabin Bastian /
2023/07/31 6:16 am EDT

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

Last quarter AMD reported revenues of $5.35 billion, down 9.07% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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This quarter analysts are expecting AMD's revenue to decline 18.7% year on year to $5.32 billion, a significant deceleration on the 70.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 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 3.2%.

Looking at AMD's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 17.1% year on year, beating analyst estimates by 2.2% and Sensata Technologies reported revenues up 4.07% year on year, exceeding estimates by 3.47%. SMART traded up 5.38% on the results, and Sensata was flat after reporting. Read our full analysis of SMART's results here and Sensata Technologies's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 2.79% over the last month. AMD is down 1.51% during the same time, and is heading into the earnings with analysts' average price target of $133.62, compared to share price of $114.05.

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