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Computer processor maker AMD (NASDAQ:AMD) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
AMD beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $6.82 billion, up 17.6% year on year. It was a satisfactory quarter for the company, with a significant improvement in its inventory levels but revenue guidance for next quarter slightly missing analysts’ expectations.
Is AMD a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AMD’s revenue to grow 22.3% year on year to $7.54 billion, improving from the 10.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 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 missed Wall Street’s revenue estimates twice over the last two years.
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’s revenues decreased 14.7% year on year, beating analysts’ expectations by 1.4%, and Allegro MicroSystems reported a revenue decline of 30.2%, topping estimates by 1.4%. Qorvo’s stock price was unchanged after the results, while Allegro MicroSystems was up 5.4%.
Read our full analysis of Qorvo’s results here and Allegro MicroSystems’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the processors and graphics chips stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.7% on average over the last month. AMD is down 12.6% during the same time and is heading into earnings with an average analyst price target of $169.82 (compared to the current share price of $113.30).
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