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AMD expects third-quarter 2023 revenues to be $5.7 billion (+/-$300 million), which indicates year-over-year growth of 2.5% and 6.5% sequentially.
It expects to witness growth in the Client segment, partially offset by a decline in the Gaming and Embedded segments.
Sequentially, Client and Data Center segment revenues are expected to have grown on a double-digit basis. However, Gaming and Embedded segment revenues are likely to have declined.
The Zacks Consensus Estimate for revenues is pegged at $5.71 billion, suggesting growth of 2.5% year over year.
Advanced Micro Devices, Inc. Price and EPS Surprise
The consensus estimate for third-quarter earnings is pegged at 68 cents per share, unchanged over the past 30 days. The figure indicates growth of 1.49% on a year-over-year basis.
AMD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and were in line with the remaining one, the earnings surprise being 3.36%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s third-quarter top-line growth is expected to have benefited from an improving PC market, particularly the consumer side. However, weak data center demand and sluggishness in wireless infrastructure deployment are expected to have hurt top-line growth amid a challenging macroeconomic background and stiff competition.
Per Gartner’s latest report, global PC shipments totaled 64.3 million units in the third quarter of 2023, down 9% year over year. Gartner stated that strong demand from the education market drove PC demand amid sluggish enterprise sales.
Client revenues are expected to have increased 21.3% year over year to $1.24 billion, per our model. However, gaming revenues are estimated to have declined 1.2% to $1.61 billion.
Our model estimates data center revenues to be $1.62 billion, indicating growth of 1% year over year. Embedded revenues are estimated to decline 5.7% year over year to $1.23 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 Q3 Developments
During the to-be-reported quarter, AMD expanded its FPGA portfolio with the launch of the Alveo UL3524 accelerator card, designed for ultra-low latency electronic trading applications. The latest state-of-the-art FPGA solution will help the company expand its footprint in the fintech domain.
AMD expanded its portfolio with the launch of Kria K24 System-on-Module (SOM) and KD240 Drives Starter Kit. The K24 SOM features a custom-built Zynq UltraScale+ MPSoC device and the supporting KD240 starter kit is a sub-$400 FPGA-based motor control kit.
AMD expanded its fourth-generation EPYC CPU portfolio with the launch of 8004 series processors that are based on Zen 4c core and a new SP6 socket. EPYC 8004 series processors can provide up to two times better SPEC power performance per system watt compared with the closest competition. AMD’s EPYC 8004 series processors deliver balanced performance and excellent energy efficiency that is required at the edge.
AMD unveiled the new Radeon RX 7800 XT and Radeon RX 7700 XT. The new graphics cards are optimized to deliver incredibly high-performance, high-refresh 1440p gaming experiences for AAA and esports titles. The company also announced the availability of AMD FidelityFX Super Resolution 3, the next generation of the popular upscaling technology that is designed to offer massive performance boosts in supported games.
In August, AMD announced that Amazon Web Services has expanded its 4th Gen AMD EPYC processor-based offerings with the general availability of Amazon Elastic Compute Cloud (EC2) M7a and Amazon EC2 Hpc7a instances.
Moreover, AMD announced two new additions to the Radeon PRO W7000 series product line, the Radeon PRO W7600 and Radeon PRO W7500 workstation graphics cards.
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. 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 Q3 Earnings?
Advanced Micro Devices (AMD - Free Report) is set to release its third-quarter 2023 results on Oct 31.
AMD expects third-quarter 2023 revenues to be $5.7 billion (+/-$300 million), which indicates year-over-year growth of 2.5% and 6.5% sequentially.
It expects to witness growth in the Client segment, partially offset by a decline in the Gaming and Embedded segments.
Sequentially, Client and Data Center segment revenues are expected to have grown on a double-digit basis. However, Gaming and Embedded segment revenues are likely to have declined.
The Zacks Consensus Estimate for revenues is pegged at $5.71 billion, suggesting growth of 2.5% year over year.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
The consensus estimate for third-quarter earnings is pegged at 68 cents per share, unchanged over the past 30 days. The figure indicates growth of 1.49% on a year-over-year basis.
AMD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and were in line with the remaining one, the earnings surprise being 3.36%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
AMD’s third-quarter top-line growth is expected to have benefited from an improving PC market, particularly the consumer side. However, weak data center demand and sluggishness in wireless infrastructure deployment are expected to have hurt top-line growth amid a challenging macroeconomic background and stiff competition.
Per Gartner’s latest report, global PC shipments totaled 64.3 million units in the third quarter of 2023, down 9% year over year. Gartner stated that strong demand from the education market drove PC demand amid sluggish enterprise sales.
Client revenues are expected to have increased 21.3% year over year to $1.24 billion, per our model. However, gaming revenues are estimated to have declined 1.2% to $1.61 billion.
Our model estimates data center revenues to be $1.62 billion, indicating growth of 1% year over year. Embedded revenues are estimated to decline 5.7% year over year to $1.23 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 Q3 Developments
During the to-be-reported quarter, AMD expanded its FPGA portfolio with the launch of the Alveo UL3524 accelerator card, designed for ultra-low latency electronic trading applications. The latest state-of-the-art FPGA solution will help the company expand its footprint in the fintech domain.
AMD expanded its portfolio with the launch of Kria K24 System-on-Module (SOM) and KD240 Drives Starter Kit. The K24 SOM features a custom-built Zynq UltraScale+ MPSoC device and the supporting KD240 starter kit is a sub-$400 FPGA-based motor control kit.
AMD expanded its fourth-generation EPYC CPU portfolio with the launch of 8004 series processors that are based on Zen 4c core and a new SP6 socket. EPYC 8004 series processors can provide up to two times better SPEC power performance per system watt compared with the closest competition. AMD’s EPYC 8004 series processors deliver balanced performance and excellent energy efficiency that is required at the edge.
AMD unveiled the new Radeon RX 7800 XT and Radeon RX 7700 XT. The new graphics cards are optimized to deliver incredibly high-performance, high-refresh 1440p gaming experiences for AAA and esports titles. The company also announced the availability of AMD FidelityFX Super Resolution 3, the next generation of the popular upscaling technology that is designed to offer massive performance boosts in supported games.
In August, AMD announced that Amazon Web Services has expanded its 4th Gen AMD EPYC processor-based offerings with the general availability of Amazon Elastic Compute Cloud (EC2) M7a and Amazon EC2 Hpc7a instances.
Moreover, AMD announced two new additions to the Radeon PRO W7000 series product line, the Radeon PRO W7600 and Radeon PRO W7500 workstation graphics cards.
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. 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 +23.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron shares have gained 14% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and a Zacks Rank #1.
GoDaddy shares have declined 3.1% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Qorvo (QRVO - Free Report) has an Earnings ESP of +4.46% and a Zacks Rank of 1, at present.
Qorvo shares have declined 4.8% year to date. QRVO is set to report its second-quarter fiscal 2024 results on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.