Advanced Micro Devices Beats Up on Analysts Yet Again

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Advanced Micro Devices (NYS: AMD) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Advanced Micro Devices missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly, and earnings per share dropped to a loss.

Gross margins improved, operating margins improved, net margins contracted.

Revenue details
Advanced Micro Devices booked revenue of $1.7 billion. The 28 analysts polled by S&P Capital IQ wanted to see revenue of $1.7 billion. Sales were 2.5% higher than the prior-year quarter's $1.6 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.19. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share on the same basis. GAAP EPS were -$0.25 for Q4 compared to $0.49 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.7%, 60 basis points better than the prior-year quarter. Operating margin was 10.0%, 210 basis points better than the prior-year quarter. Net margin was -10.5%, 3,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.6 billion. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $6.7 billion. The average EPS estimate is $0.61.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,111 members out of 3,763 rating the stock outperform, and 652 members rating it underperform. Among 678 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 552 give Advanced Micro Devices a green thumbs-up, and 126 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 $6.84.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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