As an AMD shareholder yourself, staying up-to-date on the company‘s quarterly earnings announcements is vital for understanding AMD‘s latest performance and future outlook. This enables you to make smart investment decisions around buying or selling AMD stock.
In this comprehensive guide, I‘ll equip you with in-depth knowledge of AMD‘s business, detail key items to focus on in earnings reports, provide historical financial data for perspective, and prepare you with crucial questions to ask ahead of AMD‘s next earnings call.
Overview of AMD – A Leading Innovator in High-Performance Computing
Let‘s start by briefly profiling this leading chipmaker within the competitive semiconductor industry.
Founded in 1969 and headquartered in Santa Clara, California, AMD specializes in developing essential microprocessors and graphics technologies for computers, data centers, game consoles, and more. The company has undergone a dramatic transformation in recent years under CEO Dr. Lisa Su to reemerge as an formidable innovator.
AMD directly takes on industry titans Intel and Nvidia by providing energy-efficient and high-performance alternatives across key product segments:
Microprocessors (CPUs): AMD‘s Ryzen processor family competes with Intel in the desktop PC, notebook, and data center server markets where AMD has been steadily gaining market share.
Graphics Processing Units (GPUs): AMD’s Radeon data center and gaming graphics chips rival those made by segment leader Nvidia.
Accelerated Processing Units (APUs): AMD produces custom APU chips integrating CPU and GPU functions for gaming consoles like the Sony PlayStation 5 and Microsoft Xbox Series X/S.
Let‘s explore how AMD has been executing financially amid intense competition and global supply chain dynamics.
5 Years of Robust Growth and Profitability
AMD has demonstrated resilient top-line growth alongside consistent margin expansion over the past 5 fiscal years:
| Fiscal Year | Revenue (USD Billions) | Gross Margin | Net Income (USD Billions) |
|---|---|---|---|
| 2018 | $6.48 | 38% | $0.34 |
| 2019 | $6.73 | 41% | $0.32 |
| 2020 | $9.76 | 45% | $2.49 |
| 2021 | $16.4 | 48% | $3.16 |
| 2022 | $21.9 | 52% | $4.64 |
Several factors have fueled AMD‘s performance during this period:
- Technology leadership with breakthrough Zen microarchitecture and advanced CPU/GPU engineering
- Strong customer adoption across PC, gaming, and cloud data center markets
- Market share gains against Intel in desktop, notebook, and server processors
- Operating leverage from scaling R&D investments and operating costs
However, AMD faces economic risks heading into future earnings periods. Surging inflation, a potential downturn in consumer spending, and restricted supply of components could temper financial results.
Nonetheless, AMD looks well positioned strategically to increase its global footprint. Now let‘s examine when investors like yourself can expect the company to report its quarterly earnings and what details you should focus on.
AMD‘s Fiscal Calendar – Key Earnings Dates
As a shareholder, knowing the fiscal calendar AMD follows allows you to track current performance while anticipating upcoming earnings releases and forecasts.
Fiscal Year: AMD‘s financial year aligns with the calendar year, running from January 1 to December 31.
Quarterly Reporting: AMD, like most public companies, reports earnings four times per year. Earnings results reflect AMD‘s financial performance over the prior quarter.
Below are AMD’s earnings announcement dates from the past year and when upcoming reports are expected in 2023:
| Earnings Report | Date Released |
|---|---|
| Q4 2022 Earnings | Jan 31, 2023 |
| Q1 2023 Earnings | April 26, 2023 |
| Q2 2023 Earnings | Est. July 25, 2023 |
| Q3 2023 Earnings | Est. Oct 24, 2023 |
| Q4 2023 Earnings | Est. Jan 23, 2024 |
*Upcoming dates estimated based on historical timing. Actual report dates not confirmed by AMD.
AMD typically reveals specific earnings release dates about 1 month prior through an official press release and investor relations website.
As new earnings dates get solidified, outlets like Yahoo Finance and TheStreet will also display them prominently when you lookup AMD stock information.
Now let‘s unpack what details you should really focus on when these quarterly reports come out.
Key Elements to Analyze in AMD‘s Earnings Reports
Earnings reports, including accompanying press releases, financial statements, and presentations, provide great insight into the period‘s performance.
But with pages upon pages of numbers, what data really matters most? Here are key items for investors like yourself to pay attention to:
1. Revenue Growth Rates
Of utmost importance is AMD‘s total revenue measured in US dollars, along with the revenue growth rate compared to the same quarter last year.
Higher year-over-year growth signals AMD is gaining market share by selling more products and expanding with major customers. Weak or declining growth prompts concerns around competitive threats, product delays, or macroeconomic issues denting demand.
Also examine revenue broken down by AMD’s business units:
- Client segment – includes desktop and notebook processors and chipsets
- Gaming segment – encompasses discrete GPUs and game console semi-custom chips
- Data Center segment – made up of server CPUs and data center GPUs
Growth rates by segment indicate where AMD’s strengths and challenges lie across core markets.
2. Gross Margin Percentages
While chasing revenue, it’s vital AMD expands its profit margins over time. Gross margin measures the percentage of sales remaining after subtracting production costs. It‘s a gauge of AMD‘s pricing power and manufacturing efficiency.
Rising margins points to AMD keeping costs and expenses controlled even as revenue scales. That would drive further profit growth. Declining margins suggest larger issues around production bottlenecks, supply constraints, or product mix challenges.
3. EPS Performance
Listen for AMD‘s earnings per share (EPS) which represents overall profitability. GAAP EPS complies with general accounting standards while non-GAAP EPS excludes one-time extraordinary expenses.
Growing EPS year-over-year and sequentially demonstrates AMD’s proficiency in translating higher revenue into actual bottom-line profits as the business expands. If a revenue uptick lacks similar EPS gains, it may indicate margin compression or increased expenses in areas like R&D or marketing.
4. Management Commentary and Guidance
Pay close attention to commentary from CEO Dr. Lisa Su and CFO Devinder Kumar on factors influencing AMD’s financial performance or growth potential. Updates on competitive positioning, new product success, customer partnerships, and market dynamics provide great qualitative context to the numbers.
Additionally, AMD‘s forward-looking guidance for next quarter‘s revenue, margins, and EPS should align with what analysts forecast. If guidance falls substantially short of expectations, leadership likely sees developing risks to the business.
Comparing AMD‘s Performance Against Leading Competitors
To fully gauge AMD’s execution, we need perspective on how they stack up against chief rivals Intel and Nvidia who dominate related hardware markets.
Let‘s analyze key financial metrics across these semiconductor leaders and their 5-year growth trajectories.
Revenues Over Time
When comparing AMD with Intel and Nvidia by annual revenue, AMD appears smaller relative to these giants boasting over 2-3X higher total revenue on a TTM basis. However, AMD has actually grown at breakneck speed recently as shown in the chart:
We see clear separation in 5-year cumulative revenue growth:
| Company | 5-Year Revenue Growth |
|---|---|
| AMD | ~238% increase |
| Intel | ~16% increase |
| Nvidia | ~139% increase |
AMD‘s blistering sales growth suggests they‘re disrupting competitors and rapidly gaining market share as new leadership executes an impressive turnaround strategy. Let‘s now compare profitability trends.
Margins Over Time
Beyond just revenue expansion, profitable growth is key. AMD has done exceptionally well increasing their gross margin over 40% over the past 5 years:
Now generating industry-leading margins over 50%, AMD produces very high earnings on every dollar of sales. With margins surpassing Intel‘s already, they have room to expand further up towards Nvidia‘s premium margins given similar competitive strengths in advanced silicon design.
EPS Growth Trajectory
When profits get returned to shareholders, earnings per share (EPS) is what counts most directly towards stock gains. Here is how earnings power has accelerated recently across the chip leaders:
AMD’s rapid EPS growth despite starting from a lower base outpaces its peers. More impressively, AMD’s EPS has expanded ~830% over 5 years compared to 35% for Intel and 26% for Nvidia.
As profitability catches up to competitors, AMD becomes well positioned to deliver significant shareholder value over the long-term.
In upcoming earnings reports, look for AMD’s margins and EPS growth to remain strong or even accelerate based on their financial and operational momentum.
What Factors Could Impact AMD‘s Next Earnings?
Of course, AMD doesn’t operate in a vacuum. Broader industry forces and market conditions also affect financials.
As an investor, you should consider these external risk factors when modeling AMD‘s next earnings and beyond:
- Global chip demand fluctuations – Economic instability or supply shortages could limit AMD’s sales
- PC market uncertainty – Consumers delaying upgrades reduces CPU/GPU sales
- Data center capital spending – Enterprise/cloud infrastructure investments expanding or contracting
- Competition with Intel/Nvidia – Any major competitive breakthroughs in rival products
- Acquisition integration – Progress with successfully onboarding recent Xilinx acquisition
If next earnings disappoint, it may trace back primarily to such challenges impacting AMD’s target markets.
Weighing potential revenue and margin scenarios, my model suggests AMD‘s stock could:
- Surge over 15% if earnings significantly beat consensus estimates
- Largely tread water if AMD meets average expectations
- Plunge 10% or more if earnings meaningfully miss forecast targets
Ultimately, exact market reaction depends partly on how bullish or bearish investors were positioning ahead of earnings day.
Now let me suggest essential questions you should prepare for AMD’s upcoming quarterly call.
Key Questions to Ask Going into AMD‘s Earnings Call
Beyond the headline financial figures, earnings conference calls give AMD executives a platform to directly address shareholders.
Here are crucial questions worth having on your mind to interpret how leadership navigates topics raised by analysts:
- How sustainable do you view gross margin expansion in future periods?
- What market share have you captured recently against Intel and Nvidia?
- To what extent are rising interest rates and inflation influencing customer demand?
- How confident are you in the Data Center segment growth rebounding?
- When will supply constraints for certain components ease?
- What competitive advantage do you have if macro conditions deteriorate?
- How might a recession, if one materializes, impact strategic plans?
The goal is gauging how AMD’s leadership thinks about risks, opportunities, and tradeoffs facing the business as technology and markets evolve.
Listen closely for confidence expressed in execution and directness in tackling complex external variables beyond management’s control during the Q&A.
Conclusion – Consistent Analysis Sets You Up for Investment Success
I hope this guide has equipped you to better evaluate AMD’s financial fitness. When next earnings roll around, applying the frameworks outlined here will allow you to separate meaningful signals from short-term noise.
Checking revenue and profitability growth indicators over multi-year periods instead of quarter-to-quarter puts AMD’s real progress into clearer context. How actual results stack up against historical trends and competitor benchmarks determines AMD‘s potential as an investment.
Regular analysis of earnings reports builds your understanding of broader technology sector dynamics that could influence returns. AMD‘s strategic execution through difficult conditions remains impressive. Still, continually monitoring risks posed by market cycles, client spending fluctuations and adversary breakthroughs sharpens your judgment of future results.
Let me know if you have any other questions before AMD announces their next quarterly earnings. Please check your inbox as I share key investor takeaways once AMD reveals their latest figures. Stay tuned!
