AMD (AMD) Reports Earnings Tomorrow: What To Expect

Computer processor maker AMD (NASDAQ:AMD) will be reporting results this Tuesday after market hours. Here’s what you need to know.

AMD beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $7.69 billion, up 31.7% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels 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 28.4% year on year to $8.76 billion, improving from the 17.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.17 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 1.9% on average.

Looking at AMD’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 2.8%, beating analysts’ expectations by 3.7%, and Penguin Solutions reported revenues up 8.6%, falling short of estimates by 1.3%. Intel’s stock price was unchanged after the resultswhile Penguin Solutions was down 15.9%.

Read our full analysis of Intel’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 3.1% on average over the last month. AMD is up 26.1% during the same time and is heading into earnings with an average analyst price target of $243.33 (compared to the current share price of $256.88).

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