Categories Analysis, Technology

What to look for when AMD reports Q2 earnings

Advanced Micro Devices (NASDAQ: AMD) is scheduled to report its earnings results for the second quarter of 2019 on July 30 after the market close. The top line is likely to be hurt by average selling prices and shipment volumes, while the bottom line will be impacted by higher costs and expenses.

In past few quarters, AMD has been experiencing a mix of escalating trade tensions between US and China, expected new stock keeping units, macroeconomic slowdown in China, and a decline in blockchain-related demand. These hurdles are likely to hurt the company’s performance during the second quarter.

Intel Corp. (NASDAQ: INTC) has been the market share leader for microprocessors for many years. Intel has substantially greater financial resources than AMD and accordingly spends substantially greater amounts on marketing and research and development than AMD. The company expects Intel to maintain its market position and to continue to invest heavily in marketing, research and development, new manufacturing facilities and other technology companies.

AMD could also face aggressive pricing by competitors, especially during challenging economic times. The company believes that its competitors have significant marketing and sales resources which could increase the competitive environment in such a declining market, leading to lower prices and margins.

Analysts expect the company’s earnings to plunge by 42.90% to $0.08 per share and revenue will decrease by 12.70% to $1.53 billion for the second quarter. In comparison, during the previous year quarter, AMD posted a profit of $0.14 per share on revenue of $1.76 billion. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters.

Also read: Intel Q2 earnings

For the first quarter, Advanced Micro Devices reported a 80% plunge in earnings due to a 23% drop in total revenue. Computing and Graphics segment revenue dropped by 26% primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales. Enterprise, Embedded and Semi-Custom segment revenue fell by 17% due to lower semi-custom product revenue, partially offset by higher server sales.

For the second quarter, AMD expects revenue to be about $1.52 billion, plus or minus $50 million, a decrease of about 13% year-over-year. The decrease in revenue is expected to be primarily driven by lower graphics channel sales, negligible blockchain-related GPU revenue and lower semi-custom revenue. AMD expects non-GAAP gross margin to be about 41% in the second quarter of 2019.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top