AMD Challenges Will Persist In 2015, Says Oppenheimer

In a research report sent to investors, Oppenheimer analyst Rick Schafer maintained an Underperform rating on Advanced Micro Devices (NYSE:AMD), following the company’s fourth-quarter results, posting EPS of $1.24B/$0.00, roughly in line with consensus $1.24B/$0.01E. However, first-quarter guidance of $1.05B (down 15% Q/Q), fell short of expectations. No price target was provided.

Schafer noted, “While PCs have shown signs of stabilization, AMD sees PC units down low-single-digits percentage in 2015; however, we believe AMD’s core PC/graphics sales are likely to fall faster as INTC gains incremental share at the low-end. We believe AMD’s full-year non-GAAP “break-even” profitability outlook likely proves optimistic, and note that it excludes ~$20M/qtr in stock-based compensation, approximately $0.10 in annual EPS.”

Bottom line, “With incremental balance sheet concerns and incremental share loss, we see little to no earnings power for the foreseeable.”


Stay Ahead of Everyone Else

Get The Latest Stock News Alerts