AMD will report Q3 earnings tonight after the bell with a conference call which will begin at 5 p.m. ET (for context, AMD reported at 4:15 p.m. ET last period)
Capital IQ Consensus Estimates for AMD's Q3 report come in at EPS of $0.08 on revenues of $1.51 billion vs guidance which calls for growth of 20-26% quarter-over-quarter to about $1.47-1.54 billion
- The company also sees adjusted gross margins of about 34% for the period
Above you see AMD earnings surprises and how AMD has performed during the year on a relative and absolute basis.
Points of focus in the quarter will be AMD's update on Cryptocurrency demand and Ryzena and Vega pricing. Sell side commentary about AMD's Ryzen pricing suggest that ASPs were strong last period, and peer Intel (INTC) has seen similar strength recently for its Core i7 CPUs. A few days ago, Canaccord Genuity was out ahead of earnings on AMD, suggesting momentum is building for Ryzen desktop and now EYPC server products.
Based on AMD options, the current implied volatility stands at ~ 56%, which is 63% higher than historical volatility (over the past 30 days). Based on the Weekly Oct27 AMD $14 straddle, the options market is currently pricing in a move of ~8% in either direction by weekly expiration (Friday).
AMD is flagging for a breakout on all time frames. A break of the flags above sets the stock up for a face ripping rally.