Advanced Micro Devices (AMD) 4Q09 Earnings Announced Thursday

Hardware manufacturer Advanced Micro Devices (NYSE: AMD) is set to announce its 4Q09 earnings on Thursday, January 21. The earnings expectations for this release are significantly higher than the earnings from a year ago; the company's earnings are estimated to rise to -$0.18 per share from -$0.69 per share.

A relatively-good earnings showing for AMD will help the number two hardware company in the country answer Intel's (NASDAQ: INTC) impressive earnings report released last week. Intel's EPS for 4Q09 was $0.40, 10 times the EPS of $0.04 from a year ago.

The two hardware companies, perpetually locked in competition over the lucrative computer hardware market, have locked horns repeatedly over the last few years. AMD received a $1.25 billion settlement from Intel in 2005 from an antitrust suit it filed - mirroring the current legal problems for Intel regarding antitrust and unfair practices. In a response given to the Federal Trade Commission on December 31st, Intel emphasized negative comments from one of AMD's former top sales executives about AMD's performance and product quality - as a way to show that AMD's perceived market failures have come as a result of their own practices.

In my view, AMD is doing alright. They are increasing their earnings while Intel has to fight off a vicious antitrust charge from the FTC. They still have to improve their market share if they want to continue to be competitive, but a better-than-expected earnings showing Thursday will help.