Fool Checkup: Advanced Micro Devices Earnings

Advanced Micro Devices (NYS: AMD) reported earnings on Jan. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Advanced Micro Devices met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share grew.


Margins shrank across the board.

Revenue details
Advanced Micro Devices logged revenue of $1.16 billion. The 27 analysts polled by S&P Capital IQ hoped for a top line of $1.15 billion on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $1.69 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.14. The 26 earnings estimates compiled by S&P Capital IQ averaged -$0.20 per share. GAAP EPS were -$0.63 for Q4 against -$0.25 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.4%, 3,030 basis points worse than the prior-year quarter. Operating margin was -28.7%, 3,870 basis points worse than the prior-year quarter. Net margin was -41.0%, 3,050 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is -$0.16.

Next year's average estimate for revenue is $4.80 billion. The average EPS estimate is -$0.27.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,089 members out of 3,770 rating the stock outperform, and 681 members rating it underperform. Among 592 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 455 give Advanced Micro Devices a green thumbs-up, and 137 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advanced Micro Devices is hold, with an average price target of $3.03.

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The article Fool Checkup: Advanced Micro Devices Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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