Advanced Micro Devices Inc (AMD)

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Earnings Previews: Advanced Micro Devices Inc. (NASDAQ: AMD)
By: 24/7 Wall St. | May 2, 2022

• Here is a look at three companies on deck for earnings reports after markets close Tuesday.

Advanced Micro Devices

At the end of 2021, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) were up about 30%. The stock plunged by 23% in January and, for the past 12 months, shares are up just 1.8%. The stock closed down 4.6% on Friday, getting a further push downward from Intel’s comments that the global chip shortage is likely to last longer than once expected and rising inflation is keeping customers’ hands on their wallets. AMD’s outlook for the rest of the year probably will have more influence on the share price than first-quarter results.

There are 39 analysts covering AMD, and 22 have rated the stock a Buy or Strong Buy while another 16 have Hold ratings. At a recent price of around $85.50 a share, the upside potential to a median price target of $147.50 is 72.5%. At the high price target of $200, the upside potential is 134%.

Consensus estimates call for first-quarter revenue of $5.58 billion, which would be up 15.6% sequentially and 61.7% higher year over year. Adjusted EPS of $0.92 are flat sequentially and up 43.5% year over year. For the full 2022 fiscal year, analysts’ current consensus estimates call for EPS of $4.03, up 44.6%, on revenue of $25.46 billion, up 54.9%.

AMD stock trades at 21.2 times expected 2022 EPS, 17.6 times estimated 2023 earnings of $4.85 and 14.6 times estimated 2024 earnings of $5.86 per share. The stock’s 52-week range is $72.50 to $164.46. AMD does not pay a dividend, and total shareholder return over the past year is 1.9%.

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