Courtesy of Benzinga.
Advanced Micro Devices, Inc. (NASDAQ: AMD) reported better-than-anticipated Q3:16 results, driven by the strength of its gaming business, as well as the recent success of Polaris in the GPU market.
Northland Capital’s Tom Sepenzis reiterated an Outperform rating on the company, with a price target of $8.50.
Products Drive 2017 Performance
“While we expect a seasonal pause in December/March, AMD has a number of new, exiting products slated for early CY17, and we believe that it will continue to reward investors,” Sepenzis mentioned.
With the launch of Summit Ridge, slated for Q1:17, the analyst believes that the company would have an opportunity to once again deliver beat results, with the new product helping to offset a typically seasonally slow quarter.
In addition, Sepenzis believes that the Computer & Graphics business was well positioned to witness robust growth in CY17, on both the CPU and GPU fronts, and that AR/VR products would prove to be significant drivers of growth.
Q3:16 Results
For Q3, Advanced Micro Devices reported its revenue at $1.3 billion, with non-GAAP EPS of $0.03, ahead of the estimates and the consensus. Gross margins were, however, in line with expectations at 31 percent
“The biggest changes during the quarter involved the balance sheet, with AMD raising $690 million in equity and $805 million in convertible debt which it has used to retire over $1 billion in combined debt and the ABL balance,” the analyst noted.
At last check, Advanced Micro Devices was down 4.89 percent at $6.62.
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Latest Ratings for AMD
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Oct 2016 | Oppenheimer | Upgrades | Underweight | Perform |
| Oct 2016 | Credit Suisse | Upgrades | Underperform | Neutral |
| Sep 2016 | Susquehanna | Initiates Coverage on | Neutral |
View More Analyst Ratings for AMD
View the Latest Analyst Ratings
Posted-In: Analyst Color Earnings Long Ideas News Reiteration Analyst Ratings Movers Tech
