What to Expect When AMD Reports After the Close

By Chris Lange Updated Jan 6, 1:38AM EST · Published Oct 29, 11:15AM EDT

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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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.