AMD earnings

Advanced Micro Devices, Inc.

announced its quarterly earnings results on Tuesday, reporting a $0.10 EPS for the quarter. The semiconductor company has earned $958 million during the quarter. Analysts at Credit Suisse maintained an Underperform rating with a raised TP of $1.95 from $1.90 for AMD in a research note released on Wednesday. "Despite better than expected CY16 Rev guidance (growth y/y vrs CS/Street at down ~2.5 percent y/y), we are lowering our CY16 EPS from (-$0.23) to (-$0.30) to reflect lower GM and higher OpEx," Credit Suisse noted. "In addition, CY16 Rev guidance does not look conservative as it implies ~30 percent h/h growth vrs seasonal of +2-4 percent –recall at the Company's Analyst Day on 05/15,AMD guided C2H15 h/h growth of 15 percent vrs ~2 percent actual –suggesting that management is extremely optimistic of new socket wins in their customer silicon business in C2H16," the firm commented. On Tuesday, Deutsche Bank maintained a Hold rating on AMD with a PT lowered to $1.95 from $2.00. "AMD delivered a solid quarter but once again disappointed on guidance.While its core Computing & Graphics business appears to be executing relatively well, the EESC business remains exceedingly volatile.Looking forward, while the co believes it can grow in 2016, we take a more conservative tact given the large number of unknown variables (we model 2016 revs -3 percent y/y).With expectations now higher and numerous product launches creating risk, we maintain our Hold rating and $2 P/T," the firm noted. Pacific Crest reiterated its Sector Weight rating on Tuesday in their equities research note. "Q4 revenue of $958 million (-10 percent q/q) was in line with our estimate of $955 million with stronger Computing & Graphics sales (driven by notebook APUs) offset by weaker semi-custom SoC sales. Gross margin was 30 percent, roughly in line, equating to EPS of ($0.10), in line with our estimate," the firm commented. "Q1 revenue was guided to be down 14 percent q/q to $824 million, below our estimate of $907 million, or down 5 percent q/q. Gross margin is expected to be 32.0 percent, above our estimate of 30.1 percent, equating to estimated EPS of ($0.13), below our estimate of ($0.12). AMD noted that weak Q1 guidance is mainly driven by seasonality of gaming console sales and a weak macro environment in China," Pacific Crest noted.