AMD will announce its quarterly earnings on the next working day, and market participants expect an evaluation of the current workings of this company in a competitive environment.
Last quarter, AMD exceeded the market expectations recorded by revenues of $7.69 billion, an increase of 3.4% and growing by 31.7% over the past year.
The enhanced inventory control and a positive revenue forecast of the coming quarter contributed to this significant growth, as it surpassed the expectations of analysts.
The analysts expect the revenue of AMD to increase by 28.4% annually to $8.76 billion. This rate is further increased compared to the 17.6% growth in the previous quarter of the same fiscal year.
The estimated earnings per share stand at $1.17, and this is an indication of the potential of AMD to offer strong profit margin as it progressively increases its sales. These are expectations that the firm will continue to have a strong momentum.
The positive sentiment is enhanced by the consistent track record of exceeding analyst projections that AMD has had in the past two years. In the average case, AMD has been able to surpass the expected revenues by almost 2%, which reflects its consistency and successful implementation.
Comparing the company to its peers, recently Intel has recorded relatively strong revenue growth of 2.8% which is slightly above its projections, whereas, Penguin Solutions did not achieve its projections and saw its stock price falling.
This is where the competitive edge of AMD in the processor and graphics chip market lies. Altogether, the future earnings report of AMD should confirm its status as a semiconductor innovation and industry leader. The focus on the efficient supply-chain management and overall surpassing expectations provide the company with a rather shining future as the demand of high-performance processors and graphics chips is bound to grow.
