Advanced Micro Devices, Inc. (NASDAQ: AMD) is having an overwhelmingly strong day in the pre-market hours today, and for good reason. The company reported earnings for the most recent quarter, blowing away expectations and updating guidance in a positive way. Of course, this led to excitement among investors, causing gains and prompting an alert from our partners at Trade Ideas. At the moment (8:40), AMD is trading at $15.33 per share after a gain of $1.22 per share or 8.65% thus far today.
AMD Reports Strong Q2 Earnings
As mentioned above, Advanced Micro Devices is having an incredibly strong start in the pre-market hours this morning after reporting earnings. Of course, the report proved to be overwhelmingly positive. Here's what we saw from the report...
- Earnings Per Share – Earnings proved to be a positive notch on the AMD belt. During the second quarter, analysts expected for earnings per share to come in flat at $0.00. However, the company actually reported earnings in the amount of $0.02 per share.
- Revenue – When it comes to revenue, AMD definitely did not disappoint. While analysts expected that the company would generate $1.16 billion in revenue, the company actually reported revenue in the amount of $1.22 billion.
- Guidance – Finally, Advanced Micro Devices provided some strong guidance for the third quarter. The company said that during the quarter, it expects revenue to come in the range between $1.46 billion and $1.53 billion. Analysts currently expect revenue to come in at $1.39 billion.
In a statement, AMD said that its revenue came in strong due to strong sales in the computing and graphics segment. In particular, the new Ryzen PRO desktop processors and Radeon graphics cards did well in the quarter. In a statement, Lisa Su, CEO at AMD, had the following to offer...
“We are very pleased with our improved financial performance, including double-digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching AMD incredibly closely. In particular, we're interested in following the company through the third quarter as more strong products give the company the ability to grow. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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