What to Expect When AMD Reports After the Close

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Advanced Micro Devices Inc. (NASDAQ: AMD) is scheduled to release its fourth-quarter financial results after the markets close on Tuesday. Thomson Reuters consensus estimates call for $0.08 in earnings per share (EPS) and $1.45 billion in revenue. The same period of last year reportedly had $0.08 in EPS and $1.48 billion in revenue.

After years of frustrating performance, this top company appeared to have turned the corner, but it was absolutely destroyed in October and November. AMD is one of the largest suppliers of PC microprocessors and graphics processors worldwide to computing original equipment manufacturers. The company’s main product lines include desktop, notebook and graphics processors, and embedded/semi-custom chips.

Last year the company released its first major offering in five years, the Ryzen chipset, which many feel is uniquely positioned to compete with the big players like Intel and Nvidia in the $50 billion total addressable market for personal computers, gaming, artificial intelligence and servers.

While third-quarter earnings were somewhat disappointing, new catalysts could drive the shares, with AMD having a generational share gain opportunity. EPYC 2/Rome can leverage the software and qualification work started with EPYC 1, and most expect Rome to ramp in the second half of 2019.

Excluding Tuesday’s move, AMD had outperformed the broad markets, with its stock up about 9% year to date. In just the past 52 weeks, the stock was up about 63%.

A few analysts weighed in AMD ahead of the release:

  • Merrill Lynch has a Buy rating with a $27 price target.
  • Craig Hallum also has a Buy rating and $27 price target.
  • Robert Baird has a Hold rating with a $25 price target.
  • Cowen’s Outperform rating comes with a $26 price target.
  • JPMorgan has a Neutral rating with an $18 price target.

Shares of AMD were last seen down 3% at $19.57 on Tuesday, in a 52-week range of $9.04 to $34.14. The consensus price target is $23.66.