Author: Xian Rui
On Wednesday, AMD released its Q2 quarterly earnings report for 2019, with revenue for the quarter of $1.53 billion, down 13% year-on-year; net profit of $35 million, down 70% year-on-year, and its second-quarter revenue exceeded Wall Street analysts' average expectations, adjusted The earnings per share are in line with expectations.
Although AMD has released the Q2 quarterly revenue guidance before, the early warning performance will not look good, but the financial report released yesterday made Wall Street somewhat disappointing, causing AMD's share price to plummet 10% and return to around $30.
In several of AMD's businesses, revenues for the computing and graphics divisions were $940 million, less than $1.086 billion in the same period last year; operating profit was $22 million, compared with $117 million in operating profit for the same period last year.
Revenues from corporate, embedded and semi-custom businesses were $591 million, less than $670 million in the same period last year; operating profit was $89 million, better than $69 million in the same period last year, but other businesses lost $52 million in the quarter. , higher than the $33 million in the same period last year.
For the Q3 quarter, AMD said it expects revenue to be about $1.8 billion, up and down $50 million, up 9% from the same period last year.
AMD will continue to grow in 2019, but AMD lowered its growth rate in yesterday's earnings meeting. The Q1 financial report in April is expected to be “high single-digit growth” and is now adjusted to “single-digit growth”. Analysts have also lowered AMD's full-year revenue forecast to $6.87 billion.
Although the stock price plummeted, most Wall Street analysts are still optimistic about AMD's prospects. Of the 33 analysts supporting AMD, only 4 gave a sell rating and 12 analysts gave a buy rating. 17 digits are holding ratings.
In addition, 18 analysts raised AMD's target price from $30 to $43, which means there is still more than 40% upside.
Despite a 10% drop in share prices, AMD is still the best performer among semiconductor stocks this year, up 65% so far, and the S&P 500 has risen an average of 19%.