AMD Positioned for Earnings Beat, Analysts Bullish

AMD presents a solid opportunity for investors as the company is set to potentially exceed earnings estimates again. A strong earnings history combined with a positive Earnings ESP suggests further upward momentum.

Date: 02-04-2025

AI Rating: 8

Earnings Performance and EPS Projections
Advanced Micro Devices (AMD) has demonstrated a reliable trend of surpassing earnings expectations, with an average beat of 1.48% over the last two quarters. In the previous quarter, AMD's earnings of $1.09 per share exceeded the Zacks Consensus Estimate of $1.07, showcasing a respectable surprise of 1.87%. In addition, the company beat expectations in the quarter prior, posting earnings of $0.92 per share against a consensus of $0.91, achieving an admirable surprise of 1.10%.

Recent analyst estimates for AMD have been trending upward, supported by an Earnings ESP of +2.01%, indicating growing optimism regarding the company's future earnings. This combination of a positive Earnings ESP and a Zacks Rank of #3 (Hold) reinforces the expectation of another earnings beat. The historical performance of stocks exhibiting this dual criterion suggests that nearly 70% of them tend to outperform consensus estimates, adding a layer of confidence for investors.

However, it is crucial to remember that while a negative Earnings ESP can affect predictive power, it does not guarantee an earnings miss. Historical data indicates that companies may still see positive stock performance even if they do not meet earnings expectations, further emphasizing the need for comprehensive analysis beyond just EPS figures.

As a result, AMD's strong EPS history and positive outlook will likely create an optimistic sentiment among investors, positioning the stock for potential upward movement in anticipation of the upcoming earnings report. Monitoring AMD’s performance in this regard will be essential for any investment decision-making process in the coming months.

Stocks: AMD