AMD Report for Q3 2022: Average target price lowered

AMD Report for Q3 2022 Average target price lowered
Posted by:Alex Belov Posted on:Nov 6,2022

On November 1, 2022, AMD released its 3Q 2022 financial report. Following the release of the report, the stock was down 0.7% in the main trading session. However, shares rose 4.2% post-market to $62.2.Following the release of the quarterly report, 7 Wall Street analyst firms cut their price targets for AMD stock.

What was the reason for lowering the target price?

– The financial results were mixed. This happened for the first time in the last 11 quarters.

– Quarterly revenue stopped growing after eight quarters of growth.

– The company provided a conservative outlook for the next fiscal quarter.

– In a segment of computers falling of income is observed.

– AMD management plans to cut costs.

The computer segment was the only one to see a drop in revenue. This segment lost 40% of revenue compared to Q3 2021. Revenue decreased to $1 billion (in Q3 2021 it was $1.69 billion). The drop in revenue was due to lower consumer demand. Personal computers are in decline after strong growth during the pandemic. All other segments of AMD are seeing revenue growth.

AMD Financial Highlights for Q3 2022

– Revenue amounted to $5.56 billion (+29% YoY). Revenue was below analysts’ forecasts of $5.62 billion.

– Net income — $66 mln (-93% YoY)

– EPS was $0.67 (+8% YoY). This is slightly above Wall Street’s forecast of $0.65

– Net income was $66 million (-93% YoY)

Lisa Su expects the personal computer market to shrink by another 10% in 2023. However, the long-term view of AMD shares remains positive due to the rapid development of the data center segment.

A mixed outlook and declining revenue in the PC segment led to lower target prices.

Analyst Firms Cut Price Targets for AMD Stock Following Q3 2022 Report

DATE: 11/03/2022

Goldman Sachs = $84 → $74

DATE: 11/02/2022

Keybanc = $100 → $85

Stifel = $100 → $91

Deutsche Bank = $70 → $68

Mizuho = $102 → $95

UBS = $80 → $75

Raymond James = $100 → $80

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Alex Belov

Developers by Analyst, investor

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