AMD reported earnings of 14 cents per share after reporting a loss of a penny in the same period last year. Advanced Micro Devices (AMD) - Get Report was able to swing to a profit in the second quarter this year, after losing a penny a share during the same quarter last year, lifting shares in after-hours trading Wednesday, July 25. Shares of the chipmaker are up nearly 14% in afternoon trading. AMD reported non-GAAP earnings of 14 cents per share on revenue that increased 53% year over year to $1.76 billion. Analysts were expecting the company to report earnings of 13 cents per share on revenue of $1.72 billion. Operating expenses of $467 million left the company with an operating income of $186 million and net income of $156 million. For the third quarter, AMD said it expects revenue to be approximately $1.7 billion, plus or minus $50 million, an increase of approximately 7% year-over-year, and non-GAAP gross margin to increase to approximately 38%. Analysts were expecting revenues of $1.764 billion in the third quarter, according to FactSet. The company said its third-quarter sales growth would be driven by its Ryzen and EPYC products, but partially offset by lower sales of GPU products in the blockchain market. "We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years," said Dr. Lisa Su, AMD president and CEO. "Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth."<doc-sep>Shares of Advanced Micro Devices (AMD) traded sideways Tuesday morning, just hours before the chipmaker is set to release its latest quarterly earnings report. Here's what to expect Wednesday afternoon. Shares of Advanced Micro Devices AMD traded sideways Tuesday morning, just hours before the chipmaker is set to release its latest quarterly earnings report. AMD was among the many U.S. stocks that saw mixed performance on Wednesday. The Dow Jones Industrial Average fell slightly after disappointing guidance from Boeing BA and General Motors GM, while the NASDAQ composite was lifted by gains from Alphabet GOOGL, Facebook FB, and Amazon AMZN. Investor behavior toward AMD was varied in the run-up to today’s earnings announcement. Shares were down as much as 3.7% down before settling around a 0.2% gain by the early afternoon. It is possible that investors may not expect a mind-blowing report, but that they still believe the firm will post solid numbers. Either way, AMD is an interesting company to watch as it continues to battle for a larger share of the global semiconductor market. But what should we expect from its soon-to-be-reported quarter? Let’s take a closer look. Earnings Outlook AMD will release its Q2 fiscal 2018 results shortly after the market closes today. Here’s what analysts are expecting, according to our Zacks Consensus Estimates: Earnings: AMD is projected to report earnings of $0.12 per share, which would represent 500% growth from the year-ago period. Estimate Revisions: The firm hasn’t seen any recent revisions to this quarter’s earnings estimates. However, it has seen positive revisions across the board for next quarter, the current fiscal year, and next fiscal year within the last two months. Revenue: Consensus estimates have AMD’s Q2 revenue pegged at $1.72 billion. This would mark growth of 40.6% year over year. Valuation AMD is trading at 28.2x forward 12-month earnings heading into today’s report. This is a notable premium compared to the “Electronic-Semiconductor” industry’s average of about 11.3x, but is still more balanced than what we have come to expect from the stock in recent years. Story continues Over the past year, AMD has traded as high as 639.4x and as low as 26x. Its 52-week median earnings multiple is 46.8x. Bottom Line AMD shares are up about 15% over the past year, so some investors may want to realize their gains instead of risking an earnings play. But while analyst revision activity for the quarter has been muted, AMD has a Zacks Earnings ESP (Expected Surprise Prediction) of 2.45%. A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time. Given the stock’s current Zacks Rank of #2 (Buy), this Earnings ESP value leaves us optimistic about AMD’s chances at beating estimates going into this afternoon’s report. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Facebook, Inc. (FB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report To read this article on Zacks.com click here.<doc-sep>Through the looking glass: With no sign of Intel's 7nm chips in sight, AMD is pushing ahead and has the numbers to show for it. Strong second quarter earnings from both enterprise and consumer products could help accelerate further development of future offerings. Investors in AMD have reason to celebrate following the release of second quarter earnings. During Q2 2018, revenue has grown 53 percent year-over-year to $1.7 billion. A three percent increase to gross margin has lead to the highest quarterly income within the last seven years. As a surprise to no one, AMD's computing and graphics segments both grew by double digit numbers. Sustained demand for Radeon graphics cards and the launch of Ryzen mobile processors both contributed significantly to profits. During the back to school season, AMD expects to show strong sales of mobile CPUs. One important fact to note is that this is the first time ever that the three largest commercial OEMs have offered laptops and desktops with AMD processors inside. Dell, HP, and Lenovo now have systems with Ryzen Pro APUs for mobile and offer many options of second generation Ryzen processors for desktop. Looking ahead, AMD has officially stated that the second generation Threadripper processors are targeting an August launch. For enterprise and embedded solutions, AMD posted a strong 37 percent year-over-year increase. Increased adoption of Epyc processors by major customers such as Cisco, HP, and Tencent are telling signs that AMD is meeting its target market. Sales for large-scale data centers increased more than two-fold this past quarter. Working with cloud providers, AMD also has been working to allow integration of Epyc single socket boards. Early legwork done during the second quarter is expected to show next quarter as cloud service providers buy mass numbers of Epyc processors. Between Sony and Microsoft, over 100 million consoles with AMD chips have been shipped to date. Longer term strategy will focus on delivering solutions for game consoles and other embedded platforms. CEO Lisa Su also mentioned that 7nm Epyc samples based on Zen 2 architecture have been received. Carrying codename Rome, the next series of Eypc processors are being sampled by selected partners. At this time, AMD is on schedule for launch in 2019 with hopes of further chipping away at Intel's market share. Going forward, AMD holds a strong position to continue improving sales. As the 7nm process is further refined and products using the smaller fabrication process begin to reach market, AMD should have few obstacles blocking further expansion.<doc-sep>
AMD looks to be turning things around, with its Q2 earnings report showing the company's best quarter in some time. Overall revenue for the quarter came in at $1.76 billion, which was up 53 percent over the $1.15 billion AMD brought in during the same period a year ago. The most impressive turnaround, however, was with the company's net income, which came in at $116 million for the quarter. That's up from a $42 million loss posted by the company in Q2 2017, and it represents AMD's highest quarterly net income in seven years. The results are a reflection of AMD's success in several bets that it has placed throughout its product line. A significant portion of this quarter's growth was driven by its Radeon and Ryzen products, which helped power the company's Computing and Graphics segment to $1.09 billion in revenue. That's up 64 percent year-over-year. AMD is also seeing success in the enterprise, stating that it has seen sales of its Epyc datacenter processor accelerate. In the year since Epyc's launch, HPE, Cisco, and Tencent have all adopted the processor in one form or another for their server and cloud offerings. Going forward, AMD says it expects to see Q3 revenues rise by about seven percent year-over-year, hitting around $1.7 billion on the back of continued Ryzen and Epyc growth. This quarter's results are a promising sign for AMD as it continues to do battle against Intel and NVIDIA in both the processor and graphics markets. The company still lags behind its competitors, but it's showing a renewed ability to compete after a rough several years.