We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The company expects first-quarter revenues to be $5.3 billion (+/-$300 million), which indicates year-over-year decline of 10%.
The Zacks Consensus Estimate for revenues is pegged at $5.3 billion, suggesting a decline of 9.89% from the year-ago quarter’s reported figure.
The consensus estimate for first-quarter earnings is pegged at 56 cents per share, unchanged in the past 30 days. The figure indicates a decline of 50.44% on a year-over-year basis.
Advanced Micro Devices, Inc. Price and EPS Surprise
AMD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missing once, the earnings surprise being 7.67%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s first-quarter top-line growth is expected to have suffered from lower client segment revenues due to a weak PC market and stiff competition.
Per Gartner’s latest report, global PC shipments totaled 55.2 million units in the first quarter of 2023, down 30% year over year.
Its Client and Gaming segment revenues is expected to have declined year over year due to the current demand environment.
Sequentially, Client and Gaming segment revenues are expected to have declined due to the seasonality effect. Data Center segment revenues are expected to have declined due to elevated levels of inventory with some cloud customers.
AMD’s results are expected to reflect the negative impacts of a challenging macroeconomic situation and supply chain adversities. High cyclicality and severe downturns in the semiconductor industry is expected to have hurt business and operating results.
AMD’s results are expected to have benefited from an expanding partner base and the continued adoption of EPYC, Raedon and Ryzen processors.
Additionally, its Embedded and Data Center revenues are expected to have grown year over year due to its differentiated and scalable offerings that address varied power, performance and environmental requirements.
Key Q1 Developments
During the to-be-reported quarter, AMD unveiled new Raedon RX 7000 series graphics cards built for gaming laptops, providing 26% higher performance on average than previous generation Raedon graphics.
AMD also announced the availability of three new Ryzen processors adding to the portfolio of high-performance PC products for desktops and mobiles in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
AMD has an Earnings ESP of 0.00%, it currently has a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
What Awaits Advanced Micro Devices (AMD) in Q1 Earnings?
Advanced Micro Devices (AMD - Free Report) is set to release its first-quarter 2023 results on May 2.
The company expects first-quarter revenues to be $5.3 billion (+/-$300 million), which indicates year-over-year decline of 10%.
The Zacks Consensus Estimate for revenues is pegged at $5.3 billion, suggesting a decline of 9.89% from the year-ago quarter’s reported figure.
The consensus estimate for first-quarter earnings is pegged at 56 cents per share, unchanged in the past 30 days. The figure indicates a decline of 50.44% on a year-over-year basis.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
AMD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missing once, the earnings surprise being 7.67%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s first-quarter top-line growth is expected to have suffered from lower client segment revenues due to a weak PC market and stiff competition.
Per Gartner’s latest report, global PC shipments totaled 55.2 million units in the first quarter of 2023, down 30% year over year.
Its Client and Gaming segment revenues is expected to have declined year over year due to the current demand environment.
Sequentially, Client and Gaming segment revenues are expected to have declined due to the seasonality effect. Data Center segment revenues are expected to have declined due to elevated levels of inventory with some cloud customers.
AMD’s results are expected to reflect the negative impacts of a challenging macroeconomic situation and supply chain adversities. High cyclicality and severe downturns in the semiconductor industry is expected to have hurt business and operating results.
AMD’s results are expected to have benefited from an expanding partner base and the continued adoption of EPYC, Raedon and Ryzen processors.
Additionally, its Embedded and Data Center revenues are expected to have grown year over year due to its differentiated and scalable offerings that address varied power, performance and environmental requirements.
Key Q1 Developments
During the to-be-reported quarter, AMD unveiled new Raedon RX 7000 series graphics cards built for gaming laptops, providing 26% higher performance on average than previous generation Raedon graphics.
AMD also announced the availability of three new Ryzen processors adding to the portfolio of high-performance PC products for desktops and mobiles in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
AMD has an Earnings ESP of 0.00%, it currently has a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
MKS Instruments (MKSI - Free Report) has an Earnings ESP of +46.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MKS Instruments’ shares have declined 4.9% year to date. MKSI is set to report its first-quarter 2023 results on May 3.
Garmin (GRMN - Free Report) has an Earnings ESP of +5.79% and a Zacks Rank of 3, at present.
Garmin shares have gained 3.1% year to date. GRMN is set to report its first-quarter 2023 results on May 3.
Airbnb (ABNB - Free Report) has an Earnings ESP of +23.46% and a Zacks Rank #3.
Airbnb shares have gained 32.9% year to date. ABNB is set to report its first-quarter 2023 results on May 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.