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S&P 500 (NYSE:SPY) component Advanced Micro (NYSE:AMD) will unveil its latest earnings on Thursday, October 18, 2012. Advanced Micro Devices is a semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. It provides processing solutions for the computing and graphics markets.
Advanced Micro Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of one cent per share, a decline of 93.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 13 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 2 cents during the last month. For the year, analysts are projecting net income of 24 cents per share, a decline of 52% from last year.
Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of 6 cents per share versus a mean estimate of net income of 7 cents per share. In the first quarter, the company beat estimates by 3 cents.
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Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price fell $2.12 (-43.6%), from $4.86 to $2.74. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 27, 2012, when shares rose for 10 straight days, increasing 20.5% (+$1.16) over that span. It saw one of its worst periods between August 15, 2012 and August 23, 2012 when shares fell for seven straight days, dropping 6.9% (-29 cents) over that span.
A Look Back: In the second quarter, profit fell 39.3% to $37 million (5 cents a share) from $61 million (8 cents a share) the year earlier, missing analyst expectations. Revenue fell 10.2% to $1.41 billion from $1.57 billion.
Wall St. Revenue Expectations: Analysts are projecting a decline of 20.7% in revenue from the year-earlier quarter to $1.34 billion.
Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $37 million in the second.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.7% in the first quarter and dropped again in the second quarter.
Analyst Ratings: There are mostly holds on the stock with 16 of 26 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.36 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 1.2% to $3.23 billion while liabilities rose by 0.2% to $2.35 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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