Revenue example: what to expect from advanced microdevices today

Advanced micro-devices
AMD
, inc. is scheduled to report earnings after Tuesday’s close. The stock hit an all-time high of $164.46/share in 2021 and is currently trading near $96/share. The stock is prone to big moves after earnings reports and can easily explode if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily go down. To help you prepare, here’s what the street expects:

Income example:

The company is expected to report earnings of $1.03 per share on revenue of $6.53 billion. Meanwhile, the so-called Whisper number is a gain of $1.09/share. The Whisper Number is the unofficial take on the street’s revenue.

A closer look at the basics:

The company’s earnings growth has accelerated in recent quarters, growing 117% in the first quarter of 2022 from the first quarter of 2021. Revenue has also grown steadily year on year, which is an encouraging sign. The company has managed to grow even in a difficult environment, which is a great sign for shareholders.

A closer look at the technique:

Technically, the stock has fallen more than 50% since the November high dragged down, along with other weakness in technology stocks. The stock has bounced nicely since its low in July and could easily rise if the stock reports strong data.

Pay attention to how the stock reacts to the news:

From where I sit, the main trait I look for during earnings season is how the market and a specific company react to the news. Remember, always keep your losses small and never argue with the tape.

Disclosure: the share is included in the FindLeadingStocks.com report.