Advanced Micro Devices (NASDAQ:AMD) is expected to report Q2 earnings after the market close on Thursday, July 15, with a conference call scheduled for 5:00 pm ET.
The consensus estimate is 6c for EPS and $1.55B for revenue, according to First Call. Some believe or hope, AMD's commentary should affirm rival Intel's (NASDAQ:INTC) characterization of the business backdrop for chip makers as robust. AMD has seen its shares take a beating this year with its shares down more than 24%, as it wrestles with stiffer competition from Intel and broader worries about a weakening tech market. Guidance provided by management on its last earnings call was for Q2 revenue to be "down seasonally". Revenue reported in AMD's Q1 was $1.57B.
Auriga USA's analyst Daniel Berenbaum believe "Intel's gain is likely AMD's pain." Berenbaum argued that Intel is "a product cycle story, with revenue growth and gross margin upside driven by a Nehalem-based server refresh." AMD, Berenbaum predicted, "is likely to disappoint on a relative basis when it reports Q2 results." He says, trends point to "sub-seasonal growth in desktop and mobility," which he said hurts AMD. He also cited what he called a lackluster position in the server market. Berenbaum believes AMD's competitive positioning in servers is weak, and that the company is likely missing a refresh cycle due to the move to the cloud. Berenbaum noted that, on a relative basis, "AMD will likely show lower revenue and profitability than Intel because of this."