Computer processor maker AMD (NASDAQ: AMD) will be reporting earnings this Tuesday afternoon. Here’s what you need to know.
AMD beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $9.25 billion, up 35.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ expectations.
Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AMD’s revenue to grow 26.6% year on year to $9.69 billion, improving from the 24.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.32 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMD has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.4% on average.
Looking at AMD’s peers in the processors and graphics chips segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 8.4%, meeting analysts’ expectations, and Penguin Solutions reported flat revenue, topping estimates by 1.2%. Qorvo traded down 5.6% following the results while Penguin Solutions was also down 13.8%.
Read our full analysis of Qorvo’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 9.6% on average over the last month. AMD is up 7.1% during the same time and is heading into earnings with an average analyst price target of $289.23 (compared to the current share price of $236.79).
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