Advanced Micro Devices, one of the world's largest high-performance computing, graphics, and visualization technologies company, is scheduled to release 4th quarter earnings after the closing bell this afternoon, with a press conference to follow at 5:00 pm ET.
Analysts are expecting EPS of $0.05 per share on revenue of $1.40 bln.
Analysts will be watching for sales of the Ryzen processor which was a significant driver of revenue last quarter as well as sales of the Radeon RX GPU which should see an uptick in sales due to increased blockchain interest throughout the quarter.
- Issued upside guidance for Q4, sees Q4 revs down 12-18% Q/Q (+26% Y/Y) to ~$1.34-1.45 bln
- Expect Non-GAAP gross margin to be ~35%
- Expect 2017 annual revenue to increase by greater than 30% over 2016
Key Points from Last Quarter:
- Third Quarter 2017 sales of $1.64 billion, up 25.7% from $1.31 billion in 3Q 2016.
- Computing and Graphics revenue was $819 million, up 74% y/y and 24% q/q.
Based on AMD options, the current implied volatility stands at ~ 67%, which is 54% higher than historical volatility (over the past 30 days). Based on the weekly AMD Feb02 $13 straddle, the options market is currently pricing in a move of ~10% in either direction by weekly expiration (Friday).