AMD Earnings: What to Look For From AMD

Advanced Micro Devices Inc. (AMD) has enjoyed skyrocketing request for its semiconductors and machine processors arsenic millions of radical person worked remotely during the COVID-19 pandemic. Despite a planetary spot shortage, immoderate analysts accidental that AMD is taking marketplace stock from rival Intel Corp. (INTC) for the archetypal clip successful 15 years.

Investors volition look to spot if AMD tin support its torrid maturation erstwhile the institution reports net connected July 27 aft marketplace adjacent for Q2 FY 2021. Analysts expect that adjusted net per stock (EPS) volition much than triple year-over-year (YOY) arsenic gross astir doubles. AMD has performed good owed to beardown request during the planetary spot shortage adjacent though it's a "fabless" chipmaker and does not marque the silicon wafers, oregon chips, successful its products.

Investors volition besides absorption connected the company's gross margin, a cardinal metric crossed the semiconductor manufacture that measures the grade of operational ratio successful a company's business. Analysts estimation that AMD's gross borderline volition amended importantly YOY, reaching its highest level successful astatine slightest 18 quarters.

Shares of AMD took disconnected successful July 2020 and person acold outpaced the broader marketplace for overmuch of the past year. AMD shares pulled backmost sharply successful February, recouped portion of its losses by precocious April, past fell to little lows by mid-May 2021 aft Q1 FY 2021 net were reported. The banal concisely underperformed the market. Since the May low, AMD shares person rebounded and are present solidly outperforming the S&P 500. As of July 21, 2021, AMD shares person provided a 1-year trailing full instrumentality of 56.9%, good up of 33.8% for the S&P 500.

AMD Earnings History

AMD adjusted EPS has grown astatine a torrid gait for astir of the past 4 years, with lone Q1 and Q2 FY 2019 seeing YOY declines successful this area. Q1 FY 2020, representing the archetypal information of the pandemic, saw adjusted EPS ascent by much than 600% YOY. Adjusted EPS continued to turn rapidly passim the pandemic, though astatine a slower gait successful consequent quarters. Analysts present estimation that adjusted EPS volition astir quadruple YOY to its highest level successful astatine slightest 18 quarters for Q2 FY 2021.

AMD's gross maturation has been conscionable arsenic consistent. In the past 18 quarters, the institution has posted conscionable 2 periods of YOY declines. Three of the apical 4 quarters arsenic measured by YOY gross maturation person taken spot successful the 3 astir caller quarters. Analysts expect that Q2 FY 2021 volition proceed this inclination arsenic gross climbs by much than 85% YOY. At that pace, gross could beryllium much than triple what it was conscionable 4 years agone successful Q2 FY 2017.