AMD Q2 2017 earnings

[USER8000]

Whilst AMD should turn a profit in a qtr or two, am I the only one who is surprised they didn't make a profit this qtr?

They only made a profit in Q2 2016 as they divested part of the company:
https://www.forbes.com/sites/patric...v-and-gets-293-million-to-start/#3b3d779b9df8

Also a few things - Ryzen has only really hit volume for DIYer sales and custom PC companies. None of the larger concerns have started shipping larger volumes of Ryzen PCs.

Then in laptops,everything is either Jaguar or FX based,and in the desktop channel they still have plenty of FX CPUs to sell,and these even less competitive now,and in the UK street prices of these CPUs have gone down since Ryzen was released.

There also seems to be increases in R and D expenditure by $40 million this quarter,and apparently they reduced debt by $30 million.

 

[turtile]

There also seems to be increases in R and D expenditure by $40 million this quarter,and apparently they reduced debt by $30 million.

Apparently, they've had to put in a lot more than thought to develop 7nm Zen 2.

 

[stockolicious]

I think you might be as overly optimistic as you have always been. How about we see how things play out? Makes no sense to be a fan of a company and spout how much they are going to beat another without the data to match the claim. I've seen this over an over again for all of the tech companies and their "fans". Silly if you ask me.

ok lets see - its a matter of timing not proof of concept -- Ryzen had a very noteworthy release but once we know that Ryzen is a good chip that doesnt mean $$ fall onto the income statement. they are in the 2nd quarter of a ramp in desktop CPU's only. The OEM's just starting a week or 2 ago putting Ryzen desktops on their websites - a full ramp takes 3 to 4 quarters. Also, the desktop CPU market will not have the impact that the server and APU market will. The Proof of concept of Ryzen with IF is what makes people think that they will make big profits. bulldozer killed them in the server market and it made AMD's APU's smell a bit due to the bulldozer core - that is all gone now and we have a good CPU core with IF. I keep mentioning Infinity fabric because that is what is the 800lb gorilla in the room... AMD makes their 32 core chips on the cheap - Intel is worried because the monolithic Die approach is smelling now too. (intel's monopoly advantage is breaking due to cost structure and AMD's move to have redundancy in manufacturing while also offering complementary GPU tech) Intel has become the new Xerox and it seems the market is going to move away from them. It could take them a few years to come up with an MCM design in servers to match the cost savings but will AMD be using IF to incorporate GPUs and continue innovating? yup - can Intel afford to use rebates this time "NO" there are other companies looking to make noise in the datacenter.

 

[moinmoin]

Whilst AMD should turn a profit in a qtr or two, am I the only one who is surprised they didn't make a profit this qtr?

You have to pay tax on profit, AMD has plenty debt and room to invest in further improvements to avoid profit and thus tax. For now increasing revenue alone will satisfy shareholders.

 

[Arachnotronic]

My calls will be worth bank tomorrow. I wonder if I should hold them till friday?


Considering rolling them into INTC puts for the bloodbath after their earnings. Fun times.

Intel Reports Record Second-Quarter Revenue of $14.8 Billion GAAP Operating Income of $3.8 Billion, Non-GAAP Operating Income of $4.2 Billion Company Raises Full-Year Revenue and EPS Outlook

https://s21.q4cdn.com/600692695/files/doc_financials/2017/Q2/Earnings-Release-Q2-2017.pdf

After Hours: 36.47 +1.50 (4.29%)

Poor bet.

 

[FIVR]

Didn't end up buying them because I'm still holding the AMD calls for more gains. They barely beat at all (72 vs 68). Indicates a huge drop in margin given their increase in revenue. That's going to make smart investors wary. It will probably tank tomorrow but I hope it stays up long enough for me to buy the June 2018 35$ strike INTC Puts while they are so incredibly cheap. It might even tank AH today when their guidance is crap, but we all know they could just cook the books and lie.


This company (intel) is a short's dream in 2018. The best part is you can take advantage with AMD calls and INTC puts and have massive leverage on your trades. Also if the market tanks, you're hedged.

 

[jj109]

He didn't say who was going to be doing the bleeding.

Operating income increased 190% YoY, which is pretty bonkers. Looks like the Steam HW Survey was on point after all.

 

[FIVR]

If their Operating Income nearly doubled but their earnings only increased by .04 cents per share what does that say about their margin? I mean come on, do you people even invest?

 

[Arachnotronic]

Didn't end up buying them because I'm still holding the AMD calls for more gains.

AMD is down today and it is trading below where it was before the earnings report. How can you be "holding the AMD calls for more gains" when anything bought before the ER would be down due to the decrease in IV (catalyst over) and the decline in share price?

They barely beat at all (72 vs 68). Indicates a huge drop in margin given their increase in revenue. That's going to make smart investors wary. It will probably tank tomorrow but I hope it stays up long enough for me to buy the June 2018 35$ strike INTC Puts while they are so incredibly cheap. It might even tank AH today when their guidance is crap, but we all know they could just cook the books and lie.

Intel raised its full year guide to $61.3B (up from $60B), it raised operating profit guide to $17.9B (up from $17.3B).

What on earth are you talking about?

This company (intel) is a short's dream in 2018. The best part is you can take advantage with AMD calls and INTC puts and have massive leverage on your trades. Also if the market tanks, you're hedged.

Good luck, I suppose.

 

[Phynaz]

If you have Intel shares, you better offload it now. AMD has obviously cut deeply into their consumer cpu sales.

Considering rolling them into INTC puts for the bloodbath after their earnings.

Intel's current profit margin certainly is doomed.

Derp

Intel Reports Record Second-Quarter Revenue of $14.8 Billion. Company Raises Full-Year Revenue and EPS Outlook.

Gross Margin 61.6%

Intel is Doomed

 

[FIVR]

AMD is down today and it is trading below where it was before the earnings report. How can you be "holding the AMD calls for more gains" when anything bought before the ER would be down due to the decrease in IV (catalyst over) and the decline in share price?

Most of my options don't expire until January 2018. The whole market was down today, and actually AMD mostly traded above where it was at before ER and only dipped below briefly. You see you can buy options with many different expirations. You should probably do more research before you try to criticize somebody who obviously knows way more than you do about stocks and tech companies.

Intel raised its full year guide to $61.3B (up from $60B), it raised operating profit guide to $17.9B (up from $17.3B).

What on earth are you talking about?

Uh, 17.9B = 72 cents per share (vs 68 last quarter). It's called "EPS" or "earnings per share". You might want to look it up also.

Good luck, I suppose.

I don't need "luck" because I don't gamble. Intel's downfall is a sure thing

 

[Shlong]

If you have Intel shares, you better offload it now. AMD has obviously cut deeply into their consumer cpu sales. Laptap is next. If EPYC performs, their data center is threaten. Intel needs that fat margin to maintain their FAB superiority which at this point is arguably gone. If AMD is a threat to them on all front(and looks like it's happening), then Intel does not have a prayer to compete against TSMC and Samsung. They failed at mobile, CPU became stagnant, and now someone is knocking at their datacenter. Rome will soon burn to the ground.

I've bought and sold stocks before (made some money buying Facebook at around $20 and selling it when it hit $100). I was wondering if anyone knows about how to Short a stock? I would be interested in shorting Intel.

 

[dullard]

If their Operating Income nearly doubled but their earnings only increased by .04 cents per share what does that say about their margin? I mean come on, do you people even invest?

Intel said what their margins were in the link above:

Gross Margin GAAP
Q2 2017: 61.6%
Q2 2016: 58.9%
Q2 2017 vs. Q2 2016: up 2.7 points

Gross Margin non-GAAP
Q2 2017: 63.0%
Q2 2016: 61.8%
Q2 2017 vs. Q2 2016: up 1.2 points

And regarding their earnings per share GAAP:
Q2 2017: 58 cents
Q2 2016: 27 cents
Q2 2017 vs. Q2 2016: up 115%

Earnings per share non-GAAP:
Q2 2017: 72 cents
Q2 2016: 59 cents
Q2 2017 vs. Q2 2016: up 22%

I"m sure you are a very competent investor. But you might want to keep your investment advice quiet in this thread. Things aren't going the way you predicted so far.

 

[Phynaz]

If their Operating Income nearly doubled but their earnings only increased by .04 cents per share what does that say about their margin? I mean come on, do you people even invest?

https://s21.q4cdn.com/600692695/files/doc_financials/2017/Q2/Earnings-Release-Q2-2017.pdf

Gross Margin 61.6% up 2.7 points

Do you even know how to read an earnings report?

 

[FIVR]

Not sure what shenanigans are going on with this ER. Where is all that money going if their have 190% income but only .04 EPS beat. They are bleeding probably from more meet comp programs or something. Doesn't really matter, their products sucks so you should short the stock

 

[Phynaz]

If their Operating Income nearly doubled but their earnings only increased by .04 cents per share what does that say about their margin? I mean come on, do you people even invest?

You'll be needing this;
http://www.businesssense.com.ph/operating_income_vs_net_income

 

[Arachnotronic]

Not sure what shenanigans are going on with this ER. Where is all that money going if their have 190% income but only .04 EPS beat. They are bleeding probably from more meet comp programs or something. Doesn't really matter, their products sucks so you should short the stock

A "beat" is relative to analyst expectations (which are based on a company's financial guidance), not relative to prior year results.

Intel's EPS in the PRIOR YEAR was $0.27, and its EPS in the MOST RECENT QUARTER is $0.58.

That's why you might be confused.

 

[dullard]

Where is all that money going if their have 190% income but only .04 EPS beat.
...
Uh, 17.9B = 72 cents per share (vs 68 last quarter)

Computers are cyclical. Thus, you should never compare one quarter to the next. You should compare the same quarter of 2016 with the same quarter of 2017.

Earnings per share GAAP:
Q2 2017: 58 cents
Q2 2016: 27 cents
Q2 2017 vs. Q2 2016: up 115%

Yes, income was up 190%. Earnings per share were up a nice 115% too.

 

[FIVR]

Their share price is all over the place AH. Flew up to 37 then back down to where it started at 34.6 Right now it's stabilizing around 36 but I'm not the only investor who sees this report as strange.

 

[moinmoin]

Intel is Doomed

If you haven't noticed the only one writing and repeating that is you.

 

[Arachnotronic]

He didn't say who was going to be doing the bleeding.

Operating income increased 190% YoY, which is pretty bonkers. Looks like the Steam HW Survey was on point after all.

Bear in mind, Intel had a large restructuring charge last year that didn't repeat this year, so that inflates the yoy income growth comparison by a lot.

But, nevertheless, these results are very good. AMD isn't really impacting Intel's financials in either revenue or profits based on these results. Nice work from the Intel team.

 

[raghu78]

Bear in mind, Intel had a large restructuring charge last year that didn't repeat this year, so that inflates the yoy income growth comparison by a lot.

But, nevertheless, these results are very good. AMD isn't really impacting Intel's financials in either revenue or profits based on these results. Nice work from the Intel team.

The impact to Intel will be seen over a period of time. EPYC ramp will take 3-4 quarters due to long server qualification cycles by enterprise customers. 2018 is the year when Intel's financials will show the loss of server market share. Ryzen APU ramps in 2018. Anyway it will be clear over the next 12-24 months that Intel revenues peaked in 2017.

Sent from my SM-G935V using Tapatalk

 

[swilli89]

https://s21.q4cdn.com/600692695/files/doc_financials/2017/Q2/Earnings-Release-Q2-2017.pdf

After Hours: 36.47 +1.50 (4.29%)

Poor bet.

Its already back down to $35.25 (0.80%) so it remains to be seen what happens tomorrow. Unfortunately for all of us here, who like to invest in tech, things are looking very grim at the moment. Both AMD and NVDA plummeted today along with the rest of the tech industry. Gossip pointing to a rotation of investments leaving tech and flooding into financial and retail. INTC may feel this tomorrow too as the market has not been reacting rationally to earnings beats at all.

I mean AMD surprised wallstreet analysts with additional 60M in revenue which is excellent for a company their size, and they vastly increased Q3 estimates. Even a strong Intel beat may not materialize like investors want it to. What I find interesting is that in forums like these nvidia and AMD are mortal enemies. Out there on wallstreet they are bound to eachother, whereas when one does well the market is seen as strong and it pulls the other up/down. Lately I've been investing in both. However I will say I think both AMD and NVDA are basically topped out as far as value for now..

Until Nvidia shows that GPU is truly taking over the datacenter by basically reporting additional billions in revenue and until AMD can prove they are taking decent marketshare in all CPU markets.. OEM, desktop, laptop, DIY, enterprise, they will both probably top out near current levels.

/investment talk

 

[Arachnotronic]

Its already back down to $35.25 (0.80%) so it remains to be seen what happens tomorrow. Unfortunately for all of us here, who like to invest in tech, things are looking very grim at the moment. Both AMD and NVDA plummeted today along with the rest of the tech industry. Gossip pointing to a rotation of investments leaving tech and flooding into financial and retail. INTC may feel this tomorrow too as the market has not been reacting rationally to earnings beats at all.

I mean AMD surprised wallstreet analysts with additional 60M in revenue which is excellent for a company their size, and they vastly increased Q3 estimates. Even a strong Intel beat may not materialize like investors want it to. What I find interesting is that in forums like these nvidia and AMD are mortal enemies. Out there on wallstreet they are bound to eachother, whereas when one does well the market is seen as strong and it pulls the other up/down. Lately I've been investing in both. However I will say I think both AMD and NVDA are basically topped out as far as value for now..

Until Nvidia shows that GPU is truly taking over the datacenter by basically reporting additional billions in revenue and until AMD can prove they are taking decent marketshare in all CPU markets.. OEM, desktop, laptop, DIY, enterprise, they will both probably top out near current levels.

/investment talk

I really wish there were a "business"/"investment" of tech sub-forum. Could be pretty interesting

 

[swilli89]

I really wish there were a "business"/"investment" of tech sub-forum. Could be pretty interesting

For sure. Warren Buffet says "invest in what you know". We do all this back and forth discussions.. why not put it to good use? We could always try to see if the mods are cool with making a thread dedicated to that.