What to Expect When AMD Reports After the Close

Advanced Micro Devices Inc. (NASDAQ: AMD) is scheduled to release its third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.18 in earnings per share (EPS) and $1.81 billion in revenue. The same period of last year had $0.13 in EPS and $1.65 billion in revenue.

The company previously issued guidance for the third quarter called for $1.8 billion, give or take $50 million, with a gross margin of 42%.

In the second quarter, revenues were down 13% year over year due to lower revenue in the Computing and Graphics segment and 12% in the Enterprise, Embedded and Semi-Custom segment. Revenue was up 20% quarter over quarter due to higher revenue in both segments.

At the same time, Computing and Graphics segment revenue was $940 million. Revenue was lower year over year primarily due to lower graphics channel sales, partially offset by increased client processor and data center GPU sales.

Enterprise, Embedded and Semi-Custom segment revenue was $591 million compared with last year. The year-over-year revenue decrease was primarily due to lower semi-custom product revenue, partially offset by higher EPYC processor sales.

Excluding Tuesday’s move, AMD had outperformed the broad markets, with the stock up about 82.5% year to date. In the past 52 weeks, the stock was up closer to 75%.

A few analysts weighed in on AMD ahead of the report:

  • Wedbush has an Outperform rating with a $39 price target.
  • Morgan Stanley rates it Equal Weight with a $32 price target.
  • Nomura’s Buy rating comes with a $37 price target.
  • Piper Jaffray has a Neutral rating with a $33 price target.
  • Mizuho has a Hold rating with a $36 price target.
  • Loop Capital has a Hold rating and a $32 price target.
  • KeyCorp has a Hold rating.

Shares of AMD traded down nearly 2% to $33.11 on Tuesday, in a 52-week range of $16.03 to $35.55. The consensus price target is $33.54.