Why Advanced Micro (AMD) Could Beat Earnings Estimates Again

Group 1 - Advanced Micro Devices (AMD) has a strong track record of exceeding earnings estimates, with an average surprise of 3.16% over the last two quarters [1] - In the last reported quarter, AMD achieved earnings of $0.69 per share, surpassing the Zacks Consensus Estimate of $0.67 per share, resulting in a surprise of 2.99% [1] - For the previous quarter, AMD's earnings were $0.62 per share against an expected $0.60 per share, delivering a surprise of 3.33% [1] Group 2 - Recent earnings estimates for AMD have been increasing, indicating a positive outlook for the company's earnings potential [2] - The Zacks Earnings ESP for AMD is currently +0.22%, suggesting analysts are optimistic about its near-term earnings [3] - Combining the positive Earnings ESP with a Zacks Rank of 2 (Buy) indicates a strong possibility of another earnings beat for AMD [3] Group 3 - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [2] - The Earnings ESP metric is crucial for predicting earnings performance, as it reflects the most accurate estimates from analysts [3] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [3]