NEW YORK (TheStreet) -- Advanced Micro Devices (AMD) - Get Report was given a "neutral" rating by analysts at MKM Partners who made positive comments, specifically citing "benign pricing trends," Barron's.com reports.
The company has "modest quarter-over-quarter price declines across its R9 series, which bodes well for refreshed graphics processing units (GPUs) remaining competitive following successful launches in mid-2015," the firm said.
Overall, the company is addressing the accelerating gaming total addressable market (TAM), analysts noted.
Shares of Advanced Micro Devices are sliding by 2.01% to $2.92 on Thursday afternoon.
Based in Sunnyvale, CA, Advanced Micro Devices operates as a semiconductor company worldwide.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ADVANCED MICRO DEVICES as a Sell with a ratings score of D. This is driven by several weaknesses, 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 feeble growth in its earnings per share, deteriorating net income, poor profit margins and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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. Earnings per share have declined over the last year. We anticipate that this should continue 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. For the next year, the market is expecting a contraction of 1.9% in earnings (-$0.54 versus -$0.53).
- 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 1258.8% when compared to the same quarter one year ago, falling from $17.00 million to -$197.00 million.
- The gross profit margin for ADVANCED MICRO DEVICES is currently lower than what is desirable, coming in at 26.48%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -18.56% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$59.00 million or 427.77% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- AMD, with its decline in revenue, underperformed when compared the industry average of 9.6%. Since the same quarter one year prior, revenues fell by 25.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: AMD