Advanced Micro Devices Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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