AMD: Facts You Should Know Before You Invest
Media reports and rumors about major changes in a company's business outlook usually influence trends in the company's stock price and lead to immediate price fluctuations, but there are always specific basic factors that ultimately encourage buying and selling decisions.
Revision of profit forecasts
Basically, sell-side analysts who cover stocks pay attention to how earnings forecasts are being revised to reflect the impact of the latest business trends. If a company's profit forecast rises, so does the fair value of its stock. If the fair value is higher than the current market price, investors will be interested in buying shares, and the stock price will rise. This is the reason empirical research shows that there is a strong correlation between revised earnings forecasts and short-term stock price fluctuations.
$Advanced Micro Devices(AMD.US$ Earnings of 0.67 dollars per share are expected to be recorded this quarter, which represents a change of +15.5% compared to the previous year. Over the past 30 days, the consensus forecast has changed by -2.4%.
The consensus earnings forecast for the current fiscal year is $3.42, showing a change of +29.1% compared to the previous year. This forecast has changed -0.5% over the past 30 days.
For the next fiscal year, the consensus revenue forecast is $5.18, which shows a +51.3% change from the amount Advanced Micro was expected to report a year ago. Over the past month, the forecast has changed +2.3%.
Revenue growth forecast
Earnings growth can be said to be the best indicator of a company's financial status, but if a company is unable to increase profits, nothing happens. At the end of the day, it is almost impossible for a company to increase profits over a long period of time without increasing profits. Therefore, it is important to know a company's potential profit growth.
In the case of Advanced Micro, the sales consensus forecast for the current quarter is 5.71 billion dollars, showing a change of +6.6% compared to the previous year. For the current fiscal year and the next fiscal year, the projections of $25.29 billion and $31.71 billion are respectively +11.5% and +25.4% It shows changes.
Last reported results and surprise history
$Advanced Micro Devices(AMD.US$ It was reported that revenue for the most recent quarter was 5.47 billion dollars, up 2.2% from the same period last year. EPS for the same period was $0.62, an increase compared to $0.60 in the same period last year. Compared to the consensus forecast of 5.42 billion dollars, the reported revenue is a surprise of +0.99%. EPS Surprise was +3.33%.
Over the past four quarters, Advanced Micro has surpassed consensus expectations three times in EPS. During this period, the company exceeded consensus earnings forecasts each time.
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