Market Overview

AMD's High Cash Burn 'Concerns' Citigroup Analysts


In a report published Friday, Citi analyst Christopher Danely reiterated a Sell rating on Advanced Micro Devices, Inc. (NASDAQ: AMD), while lowering the price target from $2.00 to $1.50. The analyst expressed concern regarding the continued loss of share and money in AMD's core PC MPU and graphics business, which now has net debt of $1.44 billion.

The company reported disappointing results for 2Q15 on Thursday, while guiding to revenue and margins below the Street expectations for 3Q15, driven by the continuing soft demand and share loss at its Computing and Graphics business.

AMD also reported a 9 percent quarter-on-quarter decline in its Q2 revenue, while the EPS was worse than expected due to increased operating expenses.

"AMD's net debt increased $78.0 million sequentially to $1.44 billion in 2Q15. The company exited 2Q15 with cash and investments of just $829.0 million, below its optimal balance of $1.0 billion, as AMD continues to lose money in its Computing and Graphics segment," Danely stated.

The company has guided to cash decline of $129 million, quarter-on-quarter, to $700 million, in 3Q15.

The CY2015 revenue and EPS estimates have been lowered from $3.93 billion and ($0.53) to $3.92 billion and ($0.57), respectively, to reflect a decline in revenue and margins.

Latest Ratings for AMD

Oct 2019MaintainsEqual-Weight
Aug 2019Initiates Coverage OnNeutral
Aug 2019Initiates Coverage OnHold

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Christopher Danely CitiAnalyst Color Price Target Analyst Ratings


Related Articles (AMD)

View Comments and Join the Discussion!

Latest Ratings

WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
WWells FargoMaintains123.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

U.S. A Relative Sea Of Calm Amid Greece, China Tumult

AUD/USD Mostly Lower