AMD Earnings Estimates Show Potential Growth Amid Volatility

AMD faces near-term stock performance challenges as its shares have dropped 10.7% in a month. However, earnings expectations are improving, showing strong growth potential. Investors weigh these factors amid current volatility.

Date: 18-03-2025

AI Rating: 6

Earnings Per Share (EPS)
For the current quarter, Advanced Micro Devices (AMD) is expected to post earnings of $0.93 per share, reflecting a significant increase of +50% from the year-ago quarter. Additionally, the consensus earnings estimate for the fiscal year stands at $4.59, indicating a year-over-year growth of +38.7%.

For the upcoming fiscal year, the estimated EPS rises to $5.99, suggesting a change of +30.5% from the previous year. However, it's important to note that the estimates have decreased slightly over the past month by -0.1% and -0.2% for the current and next fiscal years, respectively. This slight decline in estimates may indicate some short-term pressure on AMD's stock price.

Revenue Growth
The consensus sales estimate for the current quarter is projected at $7.11 billion, which represents a year-over-year change of +30%. For the current fiscal year, revenue estimates are at $31.87 billion, showcasing a growth of +23.6%. For the next fiscal year, they are expected to increase to $37.68 billion, marking an +18.2% change. These figures signal strong demand and growth potential for AMD, enhancing its long-term attractiveness to investors.

Net Income and Profit Margins
Net income details and profit margins were not disclosed in the report. Therefore, these metrics cannot be evaluated based on the information provided.

Free Cash Flow (FCF) and Return on Equity (ROE)
Unfortunately, no specifics are given in the report regarding Free Cash Flow or Return on Equity, which limits the assessment of AMD's overall financial health. Without these figures, it's challenging to gauge the comprehensive potential of the stock.

In conclusion, while AMD's EPS and revenue growth estimates exhibit positive trends suggesting potential upward movement in stock price, the slight downward revisions in estimates could foster caution among investors. The overall outlook indicates that AMD may perform in line with market expectations in the near term, as reflected in its Zacks Rank #3 (Hold).

Stocks: AMD