Advanced Micro Devices, Inc. (NASDAQ:AMD) Reports Earnings Today. Here’s What To Expect.
For chip maker Advanced Micro Devices, its upcoming earnings report will test whether the company can continue to grow into its swollen valuation.
Now the third most expensive stock in the PHLX Semiconductor index, AMD’s (ticker: AMD) latest results are expected Tuesday after the closing bell. Investors will be closely watching for evidence that the company continues to chip away at the dominance of its larger rival Intel (INTC).
AMD Hovering Under 100 Ahead of Report
Advanced Micro Devices Inc. (AMD) reports Q4 2020 earnings after Tuesday’s closing bell, with analysts looking for a profit of $0.30 per-share on $3.02 billion in revenue. If met, earnings-per-share (EPS) will mark a slight profit decrease compared to the same quarter in 2020. The stock fell 4.1% in October despite beating Q3 top and bottom line estimates, with shareholders jumping ship after the company announced it would acquire Xilinx Inc. (XLNX) for $35 billion.
Is AMD Paying Too Much for Xilinx?
The stock has been running in place since early September, trading around the summer rally peak at 94.28. Outsized share gains and concerns the company is paying too much for Xilinx have weighed on buying interest but the overall pattern in the last five months looks bullish, raising odds for a sustained breakout into triple digits. Even so, Intel Corp (INTC) missteps in the last year have yet to translate into higher AMD profits.
Cowen analyst Matthew Ramsay raised his target to $110 earlier this month noting, “We expect a strong Q4 and raise our 2021 revenue estimates as AMD’s share gains in PC, server, and console markets continue to track above consensus. 2021 EPS ticks down entirely due to higher 15% tax rate, and we introduce well-above Street 2022 numbers. We upgraded Intel today on the potential of the CEO change, but AMD’s momentum is here and now (and increasing).”
Wall Street and Technical Outlook
Wall Street consensus has deteriorated to an ‘Overweight’ rating after historic share gains, based upon 18 ‘Buy’ and 12 ‘Hold’ recommendations. Two analysts now recommend that shareholders close positions and move to the sidelines. Price targets currently range from a low of $13 to a Street-high $120 while the stock opened Monday’s U.S. session about $6 below the median $100 target. A breakout after an upside surprise is possible with this placement.
The stock topped out in the mid-90s in September and has failed three breakout attempts into January 2021. Price action has held high in the 5-month trading range but selling pressure has increased, dropping accumulation-distribution readings to the lowest low since July when AMD was trading more than 40 points lower. Higher-than-expected quarterly profits could overcome this deficit while an earnings miss is likely to drop price into fourth quarter support in the 70s. (Source: Yahoo finance)
The USA listed company saw a recent price trade of $94.13 and 55,086,944 shares have traded hands in the session. There are 47.17M shares which are traded as an average over the last three months period.
On 01-26-2k21 (Tuesday) Shareholders tracking shares of Advanced Micro Devices, Inc. (AMD) belongs to Technology sector and Semiconductors industry. AMD Inc. has a total market value of 111.67B at the time of writing – representing $1.20B outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at 35.63%.
AMD Performance Levels
Looking performance record on shares of Advanced Micro Devices, Inc. (AMD) we observed that the stock has seen a move 86.95% over the last 52-week trading period. The stock generated performance of 18.52% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 2.64%. Shares are at 6.71% over the previous week and 1.04% over the past month.
Analyst Views: Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $93.34. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.40on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.
Watching some historical volatility numbers on shares of Advanced Micro Devices, Inc. (AMD) we can see that the 30 days volatility is presently 3.41%. The 7 days volatility is 3.69%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
The company has a beta of 2.18. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.
The Average True Range (ATR) value reported at 3.36. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.
Advanced Micro Devices, Inc. (AMD) stock positioned 28.24% distance from the 200-day MA and stock price situated 4.11% away from the 50-day MA while located 2.28% off of the 20-day MA.
RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.
Observing the Technical Indicators:
Advanced Micro Devices, Inc. institutional ownership is held at 74.00% while insider ownership was 0.60%. As of now, AMD has a P/S, P/E and P/B values of 12.92, 131.28 and 28.79 respectively. Its P/Cash is valued at 63.06. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 44.50%.
Looking into the profitability ratios of AMD stock, an investor will find its ROE, ROA, ROI standing at 27.00%, 13.80% and 12.40%, respectively.
Earnings per Share Details of Advanced Micro Devices, Inc.
The EPS of AMD is strolling at 0.72, measuring its EPS growth this year at -11.00%. As a result, the company has an EPS growth of 39.14% for the approaching year.
Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.
The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 0.00% and Price to free cash flow remained $160.22.