Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are rising close to 5% in pre-market trading on back of yesterday evening’s release of fourth quarter and annual 2016 financial results that had investors applauding the stock’s performance
For the fourth quarter, AMD posted a non-GAAP loss per share of $0.01, a slimmed loss per share of $0.06, and -$0.2 in earnings per share. The losses were far tamer than initially expected, which did well for shares, particularly considering one year prior, net loss was at $0.13 per share.
Meanwhile, revenue surged steadily 15.4% to $1.11 billion, outperforming expectations for the sixth consecutive quarter. Additionally, gross margin reached 32%, up 2% compared to this quarter last year.
AMD management commended its server and gaming console processing unit for sales that climbed 3.7% along with its PC Polaris chip-making unit for sales that accelerated almost 28%.
Looking ahead to the first quarter of 2017, the giant sets an encouraging outlook for an 18% hike in revenue when considering the midpoint.
TipRanks analytics show AMD as a Buy. Based on 14 analysts polled by TipRanks in the last 3 months, 10 rate a Buy on AMD stock, 3 maintain a Hold, while 1 issues a Sell. The 12-month average price target stands at $11.60, marking a nearly 12% upside from where the shares last closed.
Apple Inc. (NASDAQ:AAPL) shares are rising 3% in pre-market trading after the tech giant served a strong play with its fiscal first quarter earnings of 2017. Outclassing expectation across the board and achieving record highs, Apple started 2017 in stellar form.
The tech giant reached $3.36 in EPS for its first quarter, a determined rise from this time last year, where EPS was $3.28. Consensus had projected $3.22, which Apple trounced. Additionally, revenue shattered the ceiling, attaining $78.4 billion this quarter, which compared to the first fiscal quarter of last year’s result of $75.9 billion, shows the giant is steamrolling ahead as it continues to set new records.
Guidance for the second fiscal quarter of 2017 calls for revenue ranging between $51.5 billion and $53.5 billion and gross margin ranging between 38% and 39%. With regards to costs, the company anticipates operating expenses from $6.5 billion to $6.6 billion, other income and general expenses to total $400 million and a tax rate of 26%.
Apple’s CEO Tim Cook attributes the robust performance to a stellar holiday season that helped the giant achieve its best quarterly revenue yet while breaking “multiple records along the way,” adding, “We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” said Tim Cook, Apple’s CEO.” Confident on the company’s success, Cook asserts, “Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
Additionally, Apple CFO Luca Maestri believes, “Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,” continuing, “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion.”
The board announced a $0.57 per share of AAPL common stock in a cash dividend payable February 16th to all shareholders noted by business close on February 13th.
TipRanks analytics demonstrate AAPL as a Strong Buy. Out of 32 analysts polled by TipRanks in the last 3 months, 27 are bullish on Apple stock and 5 remain sidelined. With a return potential of nearly 15%, the stock’s consensus target price stands at $139.00.
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) shares are dropping 12% in pre-market trading on the heels of the biotech firm’s reveal of a $125 million sale of its common stock at a selling price of $6.15 per share, a 13% discount to yesterday’s closing price. Contingent upon closing conditions, the underwritten public offering will make 20,325,204 shares available for purchase. SGYP expects the offering to close February 6th.
The deal emerges out of the intent to utilize the net proceeds from the proposed public offering to financially back the commercialization of pipeline drug Trulance (plecanatide), designed to treat chronic idiopathic constipation (CIC) in adult patients. Notably, the drug received a recent green light from the FDA just last month.
Additionally, the firm aims to leverage the funds raised from the offering to accelerate the clinical development of the drug. The profits could also enable SGYP to have its eyes on any potential acquisitions.
TipRanks analytics exhibit SGYP as a Strong Buy. Based on 6 analysts polled by TipRanks in the last 3 months, 5 rate a Buy on SGYP stock while 1 maintains a Hold. The 12-month average price target stands at $11.50, marking a nearly 63% upside from where the stock is currently trading.