Here's What Key Metrics Tell Us About Advanced Micro Q1 Earnings

For the quarter ended March 2024, Advanced Micro Devices AMD reported revenue of $5.47 billion, up 2.2% over the same period last year. EPS came in at $0.62, compared to $0.60 in the year-ago quarter.

The reported revenue represents a surprise of +0.99% over the Zacks Consensus Estimate of $5.42 billion. With the consensus EPS estimate being $0.60, the EPS surprise was +3.33%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Advanced Micro performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Net revenue- Data Center: $2.34 billion versus the six-analyst average estimate of $2.28 billion. The reported number represents a year-over-year change of +80.5%.
• Net revenue- Embedded: $846 million versus the six-analyst average estimate of $932.90 million. The reported number represents a year-over-year change of -45.8%.
• Net revenue- Gaming: $922 million versus the six-analyst average estimate of $1.01 billion. The reported number represents a year-over-year change of -47.5%.
• Net revenue- Client: $1.37 billion compared to the $1.21 billion average estimate based on six analysts. The reported number represents a change of +85.1% year over year.

Shares of Advanced Micro have returned -12.6% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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