Advanced Micro Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Advanced Micro (NYSE:AMD) will unveil its latest earnings on Thursday, July 19, 2012. Advanced Micro Devices is a semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. It provides processing solutions for the computing and graphics markets.

Advanced Micro Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 7 cents per share, a decline of 22.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved up. It has dropped from 14 cents during the last month. For the year, analysts are projecting profit of 60 cents per share, a rise of 20% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of 12 cents a share versus the estimate of profit of 9 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, the company swung to a loss of $590 million (80 cents a share) from a profit of $510 million (68 cents) a year earlier, but beat analyst expectations. Revenue fell 1.7% to $1.58 billion from $1.61 billion.

Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price fell $3.07 (-38.5%), from $7.97 to $4.90. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 27, 2012, when shares rose for 10 straight days, increasing 20.5% (+$1.16) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 19.1% (-$1.15) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.41 billion in revenue this quarter, a decline of 10.2% from the year-ago quarter. Analysts are forecasting total revenue of $6.12 billion for the year, a decline of 6.8% from last year’s revenue of $6.57 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2.5% in the fourth quarter of the last fiscal year and 4.4% in the third quarter of the last fiscal year before falling in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.36 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.82 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 32.3% to $2.35 billion while assets decreased 1.1% to $3.19 billion.

Analyst Ratings: With 10 analysts rating the stock as a buy, four rating it as a sell and 13 rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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