Advanced Micro Devices Meets on the Top Line, Misses Where It Counts
Advanced Micro Devices (NYS: AMD) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Advanced Micro Devices met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Advanced Micro Devices chalked up revenue of $1.41 billion. The 29 analysts polled by S&P Capital IQ predicted revenue of $1.41 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The 30 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS of $0.05 for Q2 were 38% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 50 basis points worse than the prior-year quarter. Operating margin was 5.4%, 130 basis points worse than the prior-year quarter. Net margin was 2.6%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $0.46.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,086 members out of 3,736 rating the stock outperform, and 650 members rating it underperform. Among 593 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 454 give Advanced Micro Devices a green thumbs-up, and 139 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 $8.58.
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The article Advanced Micro Devices Meets on the Top Line, Misses Where It Counts originally appeared on Fool.com.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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