Earnings Cheat Sheet: Advanced Micro Devices Rips Through Estimates, Up Big After Hours

Advanced Micro Devices, Inc. (AMD) is an international semiconductor company that manufactures processing solutions for commercial and consumer computing and graphics markets. Their primary products include microprocessors, motherboard chipsets, graphics processors for servers, workstations, and PCs. On Tuesday, Intel (INTC) set the stage for semiconductors with record breaking revenues, but AMD took the lime light today by posting better than expected profit.

Earnings: Earnings increased to $108 million ($0.15 cents a share vs $0.06 concensus) from $2 million ($0.00 cents a share) for the same quarter the previous year.

Revenues: Revenue increased 16% to $1.62 billion from $1.40 billion year-over-year.

Notable Stats: Gross margin was at 46%.

The graphics segment revenue decreased 11% sequentially, but increased 33% year-over-year.

Core Product Update: AMD demonstrated “Brazos”, the upcoming platform combining low-power x86 processor cores and discrete-level graphics capabilities in a single AMD Fusion Accelerated Processing Unit (APU).

Key CEO Quotes: “AMD’s third quarter performance was highlighted by solid gross margin and a continued focus on profitability, despite weaker than expected consumer demand,” said Dirk Meyer, AMD president and CEO. “Our strategy to deliver platforms with superior visual experiences continues to resonate. We look forward to building on this momentum when we begin shipping our first AMD Fusion Accelerated Processor Units later this quarter.”

Key Competitors to Watch: Intel Corporation (INTC) reported Tuesday and Texas Instruments Inc. (TXN)

Technicals: AMD is acting much like its biggest competitor, Intel (INTC), and trading above its 50 DMA but below its 200 DMA. The stock is also near the top of a multi-month downtrend line. A confirmed break above could be the beginning of a new trend, while selling may be indicative of a continuation of the downtrend.

On Tuesday, Intel’s positive release did not sit well with investors providing downward pressure on the Semiconductor HOLDRS (SMH) ETF. Regardless, SMH is currently trading above its 50 DMA and 200 DMA which could provide support for the industry. (AMD is trading up after hours, which is not reflected on this chart.)

Disclosure: No positions in AMD, INTC, or SMH.