Associate
- Joined
- 1 Mar 2014
- Posts
- 2,419
"Advanced Micro Devices Inc. (NASDAQ: AMD) had a very poor earnings report this past week, and it shows that the company’s turnaround is one that just is not turning. The wins for the Xbox One and PlayStation 4 are now behind, and the rest of the company’s efforts are not delivering the expectations that turnaround investors were betting on in 2013 and 2014."
Analysts :
"Despite mix skewing away from lower gross margin gaming in the first quarter, AMD expects gross margin to remain flat quarter over quarter, indicative of PC market uncertainty. Given the significant revenue shortfall and fiscal year trajectory, we have incremental free cash flow and balance sheet concerns as new semi-custom design wins are unlikely to ramp until the second half of 2016. We continue to see little to no earnings power …"
"Despite a challenging macro environment, we believe AMD’s diversification strategy continues to show gradual progress and could position the company for more defensible long-term sales and even profitability should the cost basis be lowered further or new semi-custom deals produce higher margins."
"Ultimately, we believe a strong second half recovery is needed for AMD to fulfill its commitments which looks challenging given competition from Intel & NVIDIA. … While the second half of 2015 is the critical period for AMD, we are increasingly uncertain about 2016 prospects especially around the announced new semi custom wins.
In the past, AMD said sales would ramp in 2016 — which was now clarified to mean the second half of 2016. While console shipments are likely to provide a decent floor in semi-custom business, the average sale price could decline as the console cycle enters its latter stages. … We lower our 2015/16 pro-forma EPS by 41c/47c to -$0.25/$-$0.24. … The high short interest and ongoing semiconductor consolidation wave could limit downside, but we see no fundamental attraction in the stock."
http://247wallst.com/technology-3/2015/04/19/analysts-start-to-fear-the-worst-for-amd/
I know it's not exactly relevant to the Graphics Card thread but people are interested about whats going on.
Analysts :
"Despite mix skewing away from lower gross margin gaming in the first quarter, AMD expects gross margin to remain flat quarter over quarter, indicative of PC market uncertainty. Given the significant revenue shortfall and fiscal year trajectory, we have incremental free cash flow and balance sheet concerns as new semi-custom design wins are unlikely to ramp until the second half of 2016. We continue to see little to no earnings power …"
"Despite a challenging macro environment, we believe AMD’s diversification strategy continues to show gradual progress and could position the company for more defensible long-term sales and even profitability should the cost basis be lowered further or new semi-custom deals produce higher margins."
"Ultimately, we believe a strong second half recovery is needed for AMD to fulfill its commitments which looks challenging given competition from Intel & NVIDIA. … While the second half of 2015 is the critical period for AMD, we are increasingly uncertain about 2016 prospects especially around the announced new semi custom wins.
In the past, AMD said sales would ramp in 2016 — which was now clarified to mean the second half of 2016. While console shipments are likely to provide a decent floor in semi-custom business, the average sale price could decline as the console cycle enters its latter stages. … We lower our 2015/16 pro-forma EPS by 41c/47c to -$0.25/$-$0.24. … The high short interest and ongoing semiconductor consolidation wave could limit downside, but we see no fundamental attraction in the stock."
http://247wallst.com/technology-3/2015/04/19/analysts-start-to-fear-the-worst-for-amd/
I know it's not exactly relevant to the Graphics Card thread but people are interested about whats going on.
