Advanced Micro Devices (AMD) Gets Ready to Rumble with 2Q:18 Results; Rosenblatt Weighs In

Advanced Micro Devices (NYSE:AMD) stock has rallied over 70% since April likely reflecting optimism around momentum in the company’s server market share. The stock is prone to big moves after reporting earnings this evening and can gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down.

To help you prepare, here is what Rosenblatt analyst Hans Mosesmann is expecting:

“We expect AMD to meet or beat our 2Q18 sales and non-GAAP EPS estimates of $1.725 billion and $0.13 respectively […] In terms of the 3Q18, we expect management to guide above the consensus sales of $1.76 billion; however, our current $1.85 billion is still aggressive in terms of our crypto assumptions even at half the 10% exposure seen in 1Q18 […] Our new sales and non-GAAP estimates for 3Q18 move to $1.8 billion and $0.14, down from $1.85 billion and $0.15, respectively. Our new 2018 sales and non-GAAP EPS estimates move down to $7.10 billion and $0.54, from $7.22 billion and $0.58 respectively. Our 2019 sales and non-GAAP EPS remain unchanged at $8.2 billion and $1.00 respectively given our assumption for crypto was already set at low single digit exposure.”

Furthermore, “We still expect crypto in 2Q18 to be in the 6-7% of sales level, however our mid-single digit assumption for 2H18 was likely high given further deterioration in this non-strategic market. We suspect low-single digits is the proper modeling and this translates into ~$120 million in reduced sales relative to our model for 2H18 sales.”

Net net, Mosesmann reiterates a Buy rating on AMD stock, with a price target of $27, which implies an upside of 69% from current levels. (To watch Mosesmann’s track record, click here)

TipRanks showcases AMD as one that has drawn optimism mixed with caution when it comes to consensus opinion among sell-side analysts. Out of 16 analysts polled in the last 3 months, 8 are bullish on AMD stock, 7 remain sidelined, while 1 is bearish on the stock. With a potential upside of 6%, the stock’s consensus target price stands at $17.07.

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