Advanced Micro Devices, Inc. (NASDAQ: AMD) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company reported its financial results for the first quarter, blowing away expectations. Today, we’ll talk about:
- The earnings;
- what we’re seeing from AMD as a result; and
- what we’ll be watching for ahead.
AMD Reports Earnings
As mentioned above, Advanced Micro Devices is having an incredibly strong start to the trading session this morning after reporting its financial results for the first quarter. As you could imagine, the results proved to be overwhelmingly positive. Here’s what we saw from the report:
- Earnings – In the release, AMD definitely hit the nail on the head when it comes to earnings. During the quarter, the company generated net revenue in the amount of $81 million. That works out to earnings in the amount of approximately $0.08 per share.
- Revenue – The company also hit the nail on the head when it comes to revenue. During the first quarter, the company generated revenue in the amount of $1.5 billion. That figure is up by approximately 40% year over year from $1.18 billion.
- Guidance – Finally, AMD released pretty strong guidance for the current quarter. During the second quarter, the company expects that revenue will come in the range between $1.68 billion and $1.78 billion. If guidance is hit, it would represent year-over-year growth in the amount of 50%. At the moment, analysts are expecting to see revenue in the amount of $1.58 billion.
The report was not only overwhelmingly positive, but it also alleviated a lot of fears. Many were concerned that, with the declines in the cryptocurrency space, AMD would feel some pain. However, that clearly wasn’t the case. In the report, the company said that crypto-mining accounted for about 10% of overall revenue, a larger percentage than claimed in previous quarters. This shows that, even with the declines in various cryptocurrencies, the company is seeing growth in this sector and others.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. After all, investors were expecting declining revenues thanks to declining values of cryptocurrencies. However, the company produced the exact opposite. So, it’s no surprise that we’re seeing strong gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:01), AMD is trading at $10.61 per share after a gain of $0.90 per share (9.27%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMD. In particular, we’ll be following the story closely to see if the company has the ability to continue pushing gains in revenue and earnings. Nonetheless, we’ll continue to follow the story closely and bring the story to you as it breaks!
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