Advanced Micro Devices Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Advanced Micro Devices (NYS: AMD) reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 29 (Q2), Advanced Micro Devices beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share contracted to a loss. GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
 Advanced Micro Devices logged revenue of $1.16 billion. The 26 analysts polled by S&P Capital IQ looked for revenue of $1.11 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $1.41 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.09. The 27 earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. Non-GAAP EPS were -$0.09 for Q2 versus $0.06 per share for the prior-year quarter. GAAP EPS were -$0.10 for Q2 compared to $0.05 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 39.5%, 600 basis points worse than the prior-year quarter. Operating margin was -2.5%, 830 basis points worse than the prior-year quarter. Net margin was -6.4%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $1.41 billion. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $5.16 billion. The average EPS estimate is -$0.15.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,145 members out of 3,818 rating the stock outperform, and 673 members rating it underperform. Among 599 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 476 give Advanced Micro Devices a green thumbs-up, and 123 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 $3.43.

Is Advanced Micro Devices the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

The article Advanced Micro Devices Beats on Both Top and Bottom Lines 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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement