Boston, MA 04/23/2014 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) continue to reflect the strength a day later to its first quarter earnings. What more can investors of the semi-conductor company ask when the brilliant earnings session is followed by optimistic note from the street analysts.
Better First Quarter
Advanced Micro Devices, Inc. (NYSE:AMD) was able to beat both EPS and revenue expectations in the first quarter. Its earnings per share for the first quarter came in at $0.02 per share on net income of $12 million, higher than the flat EPS estimates. Revenue too grew 28% year-over year to $1.4 billion, beating the street forecasts by $60 million. Apart from a healthy first quarter show up, the company anticipated the current quarter; that is the second quarter to witness revenue growth from 0-6% quarter-over-quarter, which is better than the market consensus of a 3% fall.
FBR And Nomura Pleased
As per an analyst at FBR, Chris Rolland, the transition story of the company has proved fruitful that led him to reiterate an ‘outperform’ rating and raise his price target on the company to $6. Rolland believes that while the PC segment will pose concern, the company’s offerings in non-PC segments will makeup the shortfall in the PC revenue in the forthcoming time. Nomura stays ‘Neutral’ on the stock, but showed content over the company’s performance in the next-gen console sales, where both Sony and Microsoft recorded sales of 12 million. On the other hand, analysts at Bernstein continue to be bearish about the company. The research firm projects the company’s core PC and console business EPS power is approximately $0.20 and sees negligible revenue from ARM server CPU sales till 2016, when it is ramped up.
During the conference call, Advanced Micro Devices, Inc. (NYSE:AMD) said that the PC shipments will continue to fall in the range of 7-10% in 2014, while IDC and Gartner projects a minor decline in the first quarter. Moreover, the company said that it will start shipping its first ARM serve CPUs in the fourth quarter of the year.
