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It’s been a month since the last Advanced Micro Devices (AMD) earnings report.
Will the recent positive trend continue until the next release of its results, or is Advanced Micro expected to decline?Before we dive into the reaction from investors and analysts lately, let’s take a look at the most recent earnings report to better understand the factors.
Advanced Micro Devices reported non-GAAP earnings of $1. 13 consistent with the constant percentage in the first quarter of 2022, beating Zacks’ consensus estimate of 24. 18%. Net source of profit exceeding 117% year over year and 23% sequentially. one billion exceeded Zacks’ consensus estimate of 17. 73% and increased 71% year-over-year. Quarter-over-quarter, earnings rose 22%. Strong functionality in the compute and graphics, Enterprise Embedded and Semi-Custom segments led to an improvement year after year.
Computing and Graphics segment revenue of $2. 8 billion increased 33% year over year and 8% sequentially. Credit can be given to the emerging sales of Ryzen and Radeon processors. GPU ASP reported year-over-year expansion in the quarter under review, driven by sales of high-end Radeon graphics products. The year-over-year buildup can be attributed to higher sales of embedded and semi-custom products and earnings of EPYC processors. EPYC’s adoption rate continued to increase in the current quarter. Major cloud providers (Microsoft, Amazon, and Alphabet) expanded their AMD-powered offerings with more than 465 new public times filed in the reported quarter. Azure, Microsoft’s cloud platform, has upgraded its HBv3 virtual machines (VMs) to 3rd Generation AMD EPYC processors with AMD 3-d V-Cache technology. Alphabet’s Google Cloud C2D virtual machines are now powered by EPYC processors. AMD EPYC also supports the new Amazon EC2 Hpc6a timings for HPC workloads and Amazon EC2 6a timings for compute-intensive workloads. On a pro forma basis, Xilinx generated revenue of more than $1 billion, up 22% year over year.
Non-GAAP gross margin increased through 660 base issues (bps) on an annual basis and through 240 bps sequentially to 53%. The gross margin expansion is primarily due to top server processor revenue and Xilinx’s high-margin revenue. Better than 22% in last year’s quarter and 27% in the previous quarter. Operating revenue stream in the PC and graphics segment $723 million, compared to $485 million in the prior-year quarter and $566 million in the prior quarter. Enterprise, Embedded and Semi-Custom Operating Source of revenue $881 million, particularly higher than last year’s quarter figure of $277 million and last year’s quarter of $762 million.
As of March 26, 2022, AMD had money and money equivalents (including marketable securities) of $6530 million, compared to $3610 million as of December 25, 2021. As of March 26, 2022, total (short- and long-term) term debt was $1. 79 billion compared to $313 million as of December 25, 2021. Operating money was reported at $995 million compared to $822 million in the fourth quarter of 2021. Free money was $924 million in the first quarter compared to $736 million in the fourth quarter of 2021.
AMD expects second-quarter 2022 earnings to be $6500 million (/-$200 million), indicating a 69% year-over-year expansion and a 10% improvement quarter-over-quarter. Non-GAAP gross margin is expected to be 54%. By 2022, AMD expects profits to grow 60% year-over-year to $26. 3 billion. AMD expects non-GAAP gross margin for 2022 to be 54%, up from a previous forecast of 51%.
How have the estimates been since then?
It turns out that the revision of estimates has tended to pile up over the past month.
The consensus estimate through 5. 56% as a result of those changes.
VGM Scores
Right now, Advanced Micro has a great expansion score of B, a score with the same score on the momentum front. However, the inventory received a D score on the side, which puts it at 40% of the back for this investment strategy. .
Overall, the name has an overall VGM score of B. If you don’t focus on a strategy, this score is what interests you.
Perspectives
Estimates have been upward for stocks, and the magnitude of those revisions looks promising. In particular, Advanced Micro has a rank of Zacks #3 (hold). We expect the name to be back online in the coming months.
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