AMD Stocks Are Down? Why & When does it change?

AMD

AMD

Just recently ZER (Zacks Equity Research) had a report on Yahoo Finance about the ongoing trend in AMD earnings and shares value. It has been about a month from the last earnings report for AMD. AMD Shares have lost about 19.4% in that time frame, underperforming the market. Is this negative trend in AMD Shares continue to the stock’s next earnings report, or not? Revenues increased 26% year over year and 34% sequentially to $1.64 billion and exceeded the Zacks Consensus Estimate of $1.51 billion. The AMD quarterly revenue figures were also the highest since 2011, done by performance of the AMD’s new product portfolio Ryzen, EPYC and Radeon Vega. A bit of history to how we got here; Client computing revenues recorded strong double-digit growth by Ryzen processor family in the desktop market. Ryzen 5 and Ryzen 7 processors constitute around 40% to 50% of the desktop market share. AMD started the shipment of Radeon Instinct MI25 to major cloud data center customers and Radeon Pro WX 9100 graphics cards to the high-end commercial design market. AMD entered into a partnership with Baidu during the quarter to focus on “optimizing” software for AMD’s Radeon Instinct GPUs in Baidu datacenters. Amazon Web Services  started using AMD for Amazon AppStream 2.0 with AMD Radeon Pro technology, aimed at driving cloud delivery of virtual applications. Enterprise, Embedded and Semi-Custom segment revenues to $824 million, almost flat year over year but up 46% sequentially. The EPYC datacenter processors sale to cloud and OEM customers has boosted server revenues. AMD optimistic about Tencent and JD.com planning to deploy the company’s EPYC processors. Baidu and Microsoft also planning of deploying EPYC based products in their hyperscale environment, which is another positive for AMD.

 

“AMD ended the third quarter with cash, cash equivalents and marketable securities of $879 million compared with $844 million in the previous quarter. Free cash flow was $32 million. fourth-quarter 2017 is a 13-week quarter while the year-ago quarter comprised 14 weeks. AMD expects revenues to decrease approximately 15% sequentially (+/-) 3%. At the mid-point, revenue growth is expected to be 26% on a year-over-year basis. Non-GAAP gross margin is expected to be 35% while non-GAAP operating expenses are anticipated to be around $410 million. The company expects 2017 revenues to witness a more than 20% increase, better than a mid-to-high teens percentage guided earlier. ” The Report says.

VGM Scores 

  • At this time, the stock has a nice Growth Score of B, however its Momentum is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

  • Overall, the stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in.

  • Our style scores indicate that the stock is more suitable for momentum investors than growth investors.

  • Outlook: The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.

Find the report here.

Tags: Amd, amd 2017 q4, AMD 2018, AMD CPU, amd finance, AMD Gpu, amd intel deal, amd ryzen, amd stocks, AMD VEGA, amd VGM Scores, amd stock price, finance

Mohsen Daemi
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