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8 Key Takeaways From AMD's 10-Q Filing

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8 Key Takeaways From AMD's 10-Q Filing

Advanced Micro Devices, Inc. (NASDAQ: AMD) filed its first-quarter 10-Q report Friday, and Baird analyst Tristan Gerra shared his takeaways from from the semiconductor manufacturer's quarter. 

Here’s a rundown of some of the numbers Gerra highlighted. (See the analyst's track record here.) 

  • Total inventory declined 3 percent sequentially, but raw materials inventory was up 103 percent compared to Q4 and now represents 10 percent of total inventory.
  • Finished goods inventory was down 47 percent sequentially and now represents just 18 percent of total inventory.
  • Free cash flow for the quarter was negative $132 million, or a 13-cent loss per share. 
  • Cash flow from operations was negative $86 million, up from negative $299 million a year ago.
  • AMD repurchased $14 million in principal on its 6.75-percent notes.
  • Total purchases from GlobalFoundries increased from $176 million a year ago to $398 million in the first quarter.
  • Computing and graphics revenue was up 95 percent due to a 66-percent increase in ASPs and a 20-percent increase in unit sales.
  • Gross margins were up 4 percent thanks to Ryzen, Radeon and EPYC product sales.

AMD delivered an impressive quarter, and the stock should continue to benefit from the ramping of EPYC and Ryzen chips and the 7nm cycle, Gerra said. 

“Management raised its revenue growth expectation for the year to mid-20s, driven by new products, with blockchain-related revenue expected to grow approximately at the same rate YoY," the analyst said, adding that fears of a collapse in the segment are "likely unfounded." 

Baird reiterated its Outperform rating and $20 price target for AMD stock.

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Latest Ratings for AMD

DateFirmActionFromTo
Nov 2019MaintainsOutperform
Nov 2019MaintainsOutperform
Oct 2019UpgradesHoldBuy

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Posted-In: Baird semiconductor stocks Tristan GerraAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

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