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NEW YORK (TheStreet) -- Shares of Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report were gaining 4.9% to $2.05 in afternoon trading on Thursday, ahead of the chipmaker's third quarter earnings report, which is due out after the market closes.

Analysts surveyed by Thomson Reuters expect AMD to report a loss of 12 cents a share and revenue of $995.87 million for the third quarter.

AMD reported a loss of 17 cents a share for the second quarter of 2015, in line with analysts' estimates. The company reported revenue of $942 million for the second quarter, below analysts' estimates of $950 million.

For the third quarter of 2014 AMD reported earnings of 3 cents a share, missing analysts' estimates of 4 cents a share. The chipmaker saw revenue of $1.43 billion for the year-ago quarter, below analysts' estimates of $1.47 billion.

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About 13.2 million shares of AMD were traded by 12:56 p.m. Thursday, above the company's average trading volume of about 11.2 million shares a day.

TheStreet Ratings team rates ADVANCED MICRO DEVICES as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate ADVANCED MICRO DEVICES (AMD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 402.8% when compared to the same quarter one year ago, falling from -$36.00 million to -$181.00 million.
  • The gross profit margin for ADVANCED MICRO DEVICES is currently lower than what is desirable, coming in at 32.91%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -19.21% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$58.00 million or 107.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 360.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ADVANCED MICRO DEVICES has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ADVANCED MICRO DEVICES reported poor results of -$0.53 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings (-$0.47 versus -$0.53).
  • You can view the full analysis from the report here: AMD