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AMD expects second-quarter 2023 revenues to be $5.3 billion (+/-$300 million), which indicates a year-over-year decline of 19% and approximately flat sequentially.
The Zacks Consensus Estimate for revenues is pegged at $5.32 billion, suggesting a decline of 18.73% from the year-ago quarter’s reported figure.
The consensus estimate for second-quarter earnings is pegged at 57 cents per share, unchanged over the past 30 days. The figure indicates a decline of 45.71% on a year-over-year basis.
AMD’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 3.41%, on average.
Advanced Micro Devices, Inc. Price and EPS Surprise
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s second-quarter top-line growth is expected to have suffered from lower client segment revenues due to a weak PC market, sluggish data center and wireless infrastructure trends.
Per Gartner’s latest report, global PC shipments totaled 59.7 million units in the second quarter of 2023, down 16.6% year over year.
Client revenues are expected to have declined 62.4% year over year to $809.2 million, per our model. Moreover, gaming revenues are estimated to have declined 6.6% to $1.55 billion.
Data center revenues are expected to have suffered from weak demand due to challenging macroeconomic conditions.
Our model estimates data center revenues to be $1.37 billion, indicating a decline of 8% year over year. Embedded revenues are estimated to grow 25% year over year to $1.57 billion, per our model.
AMD’s results are expected to benefit from an expanding partner base and strong demand for Pensando DPU. An expanded product portfolio that includes the first ASIC-based Alveo data center media accelerator is expected to have benefited top-line growth.
Key Q2 Developments
During the to-be-reported quarter, AMD announced the new lineup of AMD Ryzen and Athlon 7020 C-Series processors, built on Zen 2 architecture and RDNA 2 integrated graphics. It also announced the AMD Radeon RX 7600 graphics card, built on RDNA 3 architecture. It is designed to deliver high-performance 1080p gaming, streaming and content creation with high fidelity.
AMD announced its new Ryzen PRO 7040 series mobile processors, which feature the most advanced and power efficient x86 processors on premium Windows 11 business laptops and mobile workstations.
AMD also announced the addition of two new workload-optimized processors, 4th Gen AMD EPYC processors with AMD 3D V-Cache technology, which is ideally suited for demanding technical computing workloads.
Moreover, AMD introduced the Versal Premium VP1902 adaptive SoC. This chiplet-based device offers twice the capacity of its predecessor, empowering designers to streamline the verification process of complex semiconductor designs and accelerate the introduction of next-generation technologies to the market.
In terms of partnerships, AMD announced its expanded collaboration with Hewlett Packard to provide support to the new modular and multi-protocol storage solution, HPE Alletra Storage MP, with AMD EPYC Embedded Series processors.
AMD also announced the continuation of its relationship with Amazon Web Services with a preview of the next-generation Amazon Elastic Compute Cloud M7a instances based on 4th Gen AMD EPYC processors.
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% and a Zacks Rank #3 (Hold). 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 Q2 Earnings?
Advanced Micro Devices (AMD - Free Report) is set to release its second-quarter 2023 results on Aug 1.
AMD expects second-quarter 2023 revenues to be $5.3 billion (+/-$300 million), which indicates a year-over-year decline of 19% and approximately flat sequentially.
The Zacks Consensus Estimate for revenues is pegged at $5.32 billion, suggesting a decline of 18.73% from the year-ago quarter’s reported figure.
The consensus estimate for second-quarter earnings is pegged at 57 cents per share, unchanged over the past 30 days. The figure indicates a decline of 45.71% on a year-over-year basis.
AMD’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 3.41%, on average.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s second-quarter top-line growth is expected to have suffered from lower client segment revenues due to a weak PC market, sluggish data center and wireless infrastructure trends.
Per Gartner’s latest report, global PC shipments totaled 59.7 million units in the second quarter of 2023, down 16.6% year over year.
Client revenues are expected to have declined 62.4% year over year to $809.2 million, per our model. Moreover, gaming revenues are estimated to have declined 6.6% to $1.55 billion.
Data center revenues are expected to have suffered from weak demand due to challenging macroeconomic conditions.
Our model estimates data center revenues to be $1.37 billion, indicating a decline of 8% year over year. Embedded revenues are estimated to grow 25% year over year to $1.57 billion, per our model.
AMD’s results are expected to benefit from an expanding partner base and strong demand for Pensando DPU. An expanded product portfolio that includes the first ASIC-based Alveo data center media accelerator is expected to have benefited top-line growth.
Key Q2 Developments
During the to-be-reported quarter, AMD announced the new lineup of AMD Ryzen and Athlon 7020 C-Series processors, built on Zen 2 architecture and RDNA 2 integrated graphics. It also announced the AMD Radeon RX 7600 graphics card, built on RDNA 3 architecture. It is designed to deliver high-performance 1080p gaming, streaming and content creation with high fidelity.
AMD announced its new Ryzen PRO 7040 series mobile processors, which feature the most advanced and power efficient x86 processors on premium Windows 11 business laptops and mobile workstations.
AMD also announced the addition of two new workload-optimized processors, 4th Gen AMD EPYC processors with AMD 3D V-Cache technology, which is ideally suited for demanding technical computing workloads.
Moreover, AMD introduced the Versal Premium VP1902 adaptive SoC. This chiplet-based device offers twice the capacity of its predecessor, empowering designers to streamline the verification process of complex semiconductor designs and accelerate the introduction of next-generation technologies to the market.
In terms of partnerships, AMD announced its expanded collaboration with Hewlett Packard to provide support to the new modular and multi-protocol storage solution, HPE Alletra Storage MP, with AMD EPYC Embedded Series processors.
AMD also announced the continuation of its relationship with Amazon Web Services with a preview of the next-generation Amazon Elastic Compute Cloud M7a instances based on 4th Gen AMD EPYC processors.
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% and a Zacks Rank #3 (Hold). 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:
Itron (ITRI - Free Report) has an Earnings ESP of +7.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron shares have gained 49.6% year to date. ITRI is set to report its second-quarter 2023 results on Aug 3.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2.
BILL Holdings shares have gained 10.2% year to date. BILL is set to report its fourth-quarter fiscal 2023 results on Aug 17.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.
CACI shares have gained 14.9% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.