Advanced Micro Devices (AMD) posted quarterly earnings of $0.69 per share, beating the Zacks Consensus estimate of $0.66 per share. This compares to his earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.55%. A quarter ago, the chipmaker was expected to post earnings of $0.67 per share, when in fact he was earning $0.67, so it shouldn’t be surprising. bottom.
In the last four quarters, the company has beaten consensus EPS estimates three times.
Zacks Electronics – Advanced Micro, which belongs to the semiconductors industry, posted revenue of $5.6 billion in the quarter ended December 2022, beating Zacks Consensus estimates by 1.58%. This compares to his $4.83 billion in earnings in the same period last year. The company has beaten consensus earnings estimates three times in the past four quarters.
The sustainability of the immediate share price movement based on recent figures and future earnings projections depends primarily on management’s comments on the financial results.
Advanced Micro stock is up about 11.9% year-to-date compared to a 4.6% gain in the S&P 500.
What’s next for Advanced Micro?
The Advanced Micro has outperformed the market so far this year, but the question on the minds of investors is: what next for equities?
There is no easy answer to this important question, but one reliable metric that can help investors address this is a company’s earnings outlook. This includes not only the current consensus earnings projections for the next quarter, but also how those projections have changed recently.
Empirical studies show a strong correlation between short-term stock price movements and earnings forecast revision trends. Investors can track such revisions themselves or rely on proven valuation tools like Zacks Rank, which has an impressive track record of harnessing the power of revenue forecast revisions.
Ahead of this earnings call, Advanced Micro’s forecast revision trend: unfavorable. The magnitude and direction of the quote revision could change according to the company’s just-released earnings report, but the current situation translates to a rank #4 (sell) of Zack’s stock. Therefore, the stock price is expected to fall below the market in the near future. A complete list of today’s #1 (Strong Buy) Zachs Stocks can be found here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change going forward. Current consensus EPS estimates are $0.69 on next quarter earnings of $5.57 billion and $3.45 on earnings of $24.41 billion this fiscal year.
Investors should be mindful of the fact that industry outlook can also have a significant impact on stock price performance. As for Zacks industry ranks, electronics-semiconductors are currently in the bottom 37% of his Zacks industry of over 250. Our research shows that the top 50% of industries ranked by Zacks are more than twice as good as the bottom 50%.
Another stock in the same industry, nLight (LASR), has yet to report results for the quarter ended December 2022. The results he will be announced on February 23rd.
The laser maker is expected to post a quarterly loss of $0.15 per share in its next report. The quarterly consensus EPS estimate has not changed in the last 30 days.
nLight’s revenue is expected to decline 16% year-over-year to $56.67 million.
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Advanced Micro Devices, Inc. (AMD) : Free Inventory Analysis Report
nLight (LASR) : Free Inventory Analysis Report
