Advanced Micro Devices, Inc. (NYSE: AMD) – Q1 Earnings Preview
By:NewsyStocks   Wednesday, April 20, 2011 2:00 PM

Advanced Micro Devices Inc. (NYSE: AMD) is expected to report its first quarter 2011 financial results on Thursday, April 21, 2011. In the last four quarters, ending December 31, 2010, STX's reported earnings per share exceeded analysts' consensus estimate by margins of 280 percent in March 2010, 83.30 percent in June 2010, 150 percent in September 2010 and 27.30 percent in December 2010.

AMD is a semiconductor design innovator. AMD's graphics and computing technologies power a variety of solutions including PCs, game consoles and the servers that drive the Internet and businesses. The company was established in 1969, is headquartered in Sunnyvale, CA., and has 11,000 employees worldwide in 47 locations worldwide. AMD is a worldwide enterprise with more than a dozen research and development facilities, nearly two dozen international sales offices, and manufacturing facilities in Malaysia, China, and Singapore. In 2010, AMD derived more than 88% percent of its revenue from international markets.

In January, AMD reported fourth quarter 2010 revenue of $1.65 billion, net income of $375 million, or $0.50 per share, and operating income of $413 million. The company reported non-GAAP net income of $106 million, or $0.14 per share, and non-GAAP operating income of $141 million. For the year ended December 25, 2010, AMD reported revenue of $6.49 billion, net income of $471 million, or $0.64 per share, and operating income of $848 million. Full year non-GAAP net income was $360 million, or $0.49 per share, and operating income was $553 million. The gross margin for the fourth quarter 2010 was 45 percent, down one percentage point sequentially primarily due to lower microprocessor average selling price. The cash, cash equivalents and marketable securities balance at the end of the quarter was $1.79 billion. Operating income was $91 million, compared with $164 million in Q3 2010 and $161 million in Q4 2009.

During the quarter, AMD announced broad support for the AMD Fusion family of accelerated processing units from the software and hardware community. On January 6, 2011, AMD announced its contribution to Samsung SUR40 for Microsoft Surface, a highly interactive, multi-touch computing platform that allows multiple users to collaboratively and simultaneously interact with content and each other. According to the companym, the AMD Athlon II X2 embedded processor, combined with AMD Radeon HD 6700M Series graphics, provides a strong foundation for Samsung SUR40 that delivers high performance and world-class graphics along with the reliability and low power required of this unique form factor.

On March 8, 2011, AMD launched the fastest graphics card in the world, the AMD Radeon HD 6990. On March 28, 2011, for the second consecutive year, AMD received a 5-Star Partner rating and has been named to CRN's 2011 Partner Programs Guide for its AMD Fusion Partner Program. CRN's Partner Programs Guide recognizes vendors with robust partner programs or products that provide the best possible partnering elements for channel success. Analysts have estimated an average EPS of $0.06 for the first quarter of fiscal 2011 compared with EPS of $0.09 in the same period last year. The average revenue estimate for the quarter has been increased to $1.62 billion from $1.57 billion in the prior year's period. This is an estimated increase of approximately 2.70 percent. In the last 52 weeks, the stock has been trading in the range of $5.53 to $10.24. The stock closed at $8.10 on April 4, 2011. The mean target price of the stock is estimated at $9.37.