Countdown to Advanced Micro Devices (AMD) 2Q:18 Earnings
It’s that time of the year again. Earnings season is just about to move into full swing.
One company that attract lots of investor attention when it reports earnings is chip giant Advanced Micro Devices (NASDAQ:AMD). Investors will look to AMD’s second-quarter results tomorrow to see if the company can sustain high levels of growth.
AMD forecast June quarter revenue of $1,725 million at the midpoint of its guided range and assumed growth from Ryzen and EPYC, seasonal growth for the semi-custom segment and modest declines for graphics based on expectations for lower blockchain demand.
Ahead of the big event, MKM analyst Ruben Roy reiterates a Neutral rating on AMD stock, with a price target of $13.50, which implies a downside of 18% from current levels.
Roy commented, “While we expect solid June quarter results for AMD, we believe that blockchain weakness, coupled with the potential for GPU channel inventory, could limit seasonal growth in the September quarter and the current consensus estimate of $1,766 could prove high. Investors will likely focus more on updates to AMD’s full-year guidance (management’s current revenue forecast calls for growth in the mid 20% range) and longerterm market share commentary. While we continue to appreciate AMD’s execution, we believe that recent share price performance reflects optimism around the company’s server market share momentum. We maintain our fair value estimate of $13.50, which is based on 25x multiple on our 2019 EPS estimate.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ruben Roy has a yearly average return of 11.2% and a 63% success rate. Roy has is ranked #629 out of 4840 analysts.
Overall, TipRanks suggests optimism with some caution baked into expectations when it comes to Wall Street’s majority perspective on the big AMD machine. Out of 15 analysts polled in the last 3 months, 5 are bullish on the stock, 6 remain sidelined, while only 1 is bearish. The 12-month average price target stands at $17.35, marking nearly 5% in upside potential from where the stock is currently trading.