AMD Posts Profit But Warns on Revenue

[nicehat]

 

 

AMD swung to a profit in the fourth quarter. However, the company also projected a decline in revenue for the first quarter. For the current quarter, AMD expects revenue to be about 16% less than the latest period, plus or minus 3%. Analysts polled by Thomson Reuters were expecting revenue of $1.36 billion. For the fourth quarter, AMD reported a profit of $89 million, or 12 cents a share, compared with a year-earlier loss of $473 million, or 63 cents a share. Excluding restructuring and other charges and amortization, the company reported a per-share profit of six cents, compared with a loss of 14 cents a share a year earlier. Analysts were expecting a per-share profit of five cents. Sales jumped 38% to $1.59 billion, topping the company's October projection for about $1.53 billion, which was slightly more than market expectations at the time. So as AMD actually turns a profit, could this be the turn around that everyone thought would never happen? What do you think about the next quarter? Up from today? or down? Why?

 

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=1892414&highlight=

[Shd0w2]

Down.

[Tmh85]

Meh its like cisco never going to go anywhere it been going up cent going down two cents...

[nicehat]

Down.

 

Ok..why?

[Vitalius]

Ok..why?

Because that's what has happened nearly every time AMD has posted an ER. Regardless of whether it was positive or negative. 

[Shd0w2]

I just don't find that it'd be wise to invest right now since this is like one of the only breaks amd has gotten, then I bet it will fall.

[nicehat]

Because that's what has happened nearly every time AMD has posted an ER. Regardless of whether it was positive or negative. 

 

Yes but this is the first quarter that they have posted a profit that was within expectations. The question is, will AMD beat expectations or will it meet them? Traditionally, when AMD beats out the analysts, (profits or losses) it continues to rise - as it did this time last year when it beat expectations in its posted loss. 

[Ashley]

It seems like they've gotten costs under control and they have products people actually want to buy. The 6000 series and 7000 series early on were very lackluster, and at the same time their chips couldn't compete with Intel's performance. Now they have APUs that people want for small builds and graphics cards that gamers and coin miners want to buy. I think things are looking up for AMD but they are certainly not out of the woods yet, but they're far from bankruptcy and I think they're headed in the right direction.

 

As for the stock price, that means very little. Investors can be very finicky about companies seen as riskier like AMD, so even a net profit will likely be ignored in the face of declining revenue.

[paulsterio]

To be honest, this will be because of the success of their GPUs, not CPUs. 

 

Their GPUs have been doing very well, giving nVidia a run for their money and having recently become popular due to cryptocurrency mining. 

 

Their CPUs are still rubbish. 

[xToFxREAPER]

Based on the past i think they will bounce back and forth. they will fall behind then catch back up and maybe pull ahead a bit then theyll falter again. only time will tell

[AHaskin14]

How is it that with Microsoft and Sony doing so well with their consoles, AMD is doing poorly? wouldnt AMD be making major bank?

[TechFan@ic]

The first fiscal quarter of every year is always the weakest just like the last quarter is always the strongest.
Kaveri was late and so was Hawaii, otherwise AMD would have done significantly better.

[Guest]

Ugh, I actually bought 4000 shares of AMD just before closing, basically all my savings in the account. Expected AMD to go up a lot soon thanks to consoles, crypto-currency and I admit, because I kept hearing Linus gush over their innovations recently. Instead it's down 11% after hours. Probably shouldn't be using Linus as a financial consultant. lol

 

Oh well, I still like what AMD's doing so I'm going to hang in there for a year or so and see how it goes. $4 seems really, really low and 100% of all stocks I've sold have ended up going back up later so I wouldn't be surprised if AMD does too eventually. If not . . I'm afraid I may be homeless soon.  :unsure:

[AHaskin14]

Ugh, I actually bought 4000 shares of AMD just before closing, basically all my savings in the account. Expected AMD to go up a lot soon thanks to consoles, crypto-currency and I admit, because I kept hearing Linus gush over their innovations recently. Instead it's down 11% after hours. Probably shouldn't be using Linus as a financial consultant. lol

 

Oh well, I still like what AMD's doing so I'm going to hang in there for a year or so and see how it goes. $4 seems really, really low and 100% of all stocks I've sold have ended up going back up later so I wouldn't be surprised if AMD does too eventually. If not . . I'm afraid I may be homeless soon.  :unsure:

competing in a major market with only two competitors (Nvidia and Intel) its hard for any of the 3 companies to consistently stay on top with each releasing "revolutionary" new technology every year. I say hold on and see where things go.

[Fetzie]

The console money will only really start to show up in the 2014 Q1 report.

[Liam-Wabbit]

I hope it good news for AMD, I want a PC future where AMD are still an option for those who can't afford high end Intel chips
and it keeps companies like Intel & Nvidia on their feet as far as research goes.

I don't think cross fire and driver problems have help them much, but buying ATI has put them ahead with the APU.
I would of thought they would do better, as more people buy laptop and the APU in the laptop market, but I guess I was wrong there.

AMD really do need to work on their marketing, you mention Intel and every one knows who they are, even if they're not interested in
computers and PC parts. Which make it harder to sell a AMD based laptop to some one that knows near to nothing about PC's


Doesn't help, with all the different version and sockets for both Intel and AMD on the market.
Most laptops are bought on a budget, I most people don't even know what inside. 
eg somebody thinking their laptop great because it an Intel & you point out it's a Celeron, which Intel still seem to sell

I can see why AMD are ditching the AM3+ platform, makes sense, specially since they'll be selling APU's with the new flavours of consoles.
cheaper manufacturing. They are going in the right direction lets hope it stays that way

[Imaginaerum]

Doesn't help, with all the different version and sockets for both Intel and AMD on the market.

Most laptops are bought on a budget, I most people don't even know what inside. 

eg somebody thinking their laptop great because it an Intel & you point out it's a Celeron, which Intel still seem to still sell

Sandy bridge Celeron's aren't that bad if all you do is take notes for school, you can sometimes find AMD quad cores for cheaper in laptops but like you said people tend to go with Intel.

[TheCanadianGamer16]

To be honest, this will be because of the success of their GPUs, not CPUs. 

 

Their GPUs have been doing very well, giving nVidia a run for their money and having recently become popular due to cryptocurrency mining. 

 

Their CPUs are still rubbish. 

not to cause a shit storm, but when the 8350 beats out even a 3770K, how exactly can you say they are rubbish?

[Naruke Alpha]

well my next/first low-end gaming pc will be an AMD APU so uh, ill be buying from AMD lol. 

[Liam-Wabbit]

funny how a simple article turns very quickly into a AMD vs Intel fan boy

[TheCanadianGamer16]

How is it that with Microsoft and Sony doing so well with their consoles, AMD is doing poorly? wouldnt AMD be making major bank?

AMD sells their chips to microsoft and sony at just above cost, if not at a loss

[DarylEPerez]

Of course that could turn around and I think it will. Speaking in terms of all innovative technology NVidia presented on 2014 CES, AMD it's just not the right choice for companies who want to imply certain technology to cars, etc. Besides, Kaveri it's shown to be a "beast" by AMD which is mostly what happens every time they come up with a new chip, "Hyperbole". They exaggerate  what they're bringing and leaves everyone disappointed. I don't really believe we're going to see such 45% performance improve when Mantle comes as well. And with Maxwell just around the corner, if prices on current 700 series GTX drop, AMD has no shot. 

[LoneGun]

Ugh, I actually bought 4000 shares of AMD just before closing, basically all my savings in the account. Expected AMD to go up a lot soon thanks to consoles, crypto-currency and I admit, because I kept hearing Linus gush over their innovations recently. Instead it's down 11% after hours. Probably shouldn't be using Linus as a financial consultant. lol

 

Oh well, I still like what AMD's doing so I'm going to hang in there for a year or so and see how it goes. $4 seems really, really low and 100% of all stocks I've sold have ended up going back up later so I wouldn't be surprised if AMD does too eventually. If not . . I'm afraid I may be homeless soon.  :unsure:

 

The stock already went up 30% +in Dec. People already expect AMD to have a good quarter. You are simply too late to the party. Smart money is always one step earlier. 

[TechFan@ic]

AMD sells their chips to microsoft and sony at just above cost, if not at a loss

Uhmmm, no.

http://news.idg.no/cw/art.cfm?id=2B356C6B-D51B-0855-E8520E541D85CC9B

[ThorBuildingLegos]

I'm wondering if Mantle will have an effect on the market. But if it is as some say on this thread (I'm not that versed in stocks) and the value has sort of peaked and will continue to drop and rise within the same range of points

 

I can blame it on one thing, and that's the R7 series. If anything is a drop in revenue it has to be the R7 series. To quote Linus: Why were they ever made? They're useless. Sure, some have a small form factor, but most people who want that small a form factor will go for something like a NUC and the performance be damned.

 

So, yeah. I hope Mantle will be a good move for them but I think most likely that the R7 series will not be selling as well. I asked a guy working in a PC shop down the road here, and he was adamant about these cards. "Why did the higher ups decide to clutter my shelves with THIS?!" If you've lost the salesman you've lost the sale (unless, you know, they're shady salesman).

 

So up, down, as long as one comes after the other... over and over again *smirk* Baum-chika-wauwa!