AMD: shares surge on 'beat-and-raise' quarter.
(CercleFinance.com) - Advanced Micro Devices shares rose over 10 per cent in early trading on Wednesday after the chipmaker beat forecasts in the past quarter and guided above expectations for the third quarter.
On a non-GAAP basis, the California-based company posted a net income of 19 million dollars for the second quarter, compared to a net loss of 40 million a year ago.
Revenue was up 19 per cent year-over-year, at 1.22 billion dollars, driven by higher revenue in computing and graphics.
For the third quarter of 2017, AMD expects revenue to increase approximately 23 per cent sequentially, give or take 3 percent.
"While management continues to execute well to targets that appear reasonable (...), current valuation of 27.4 times EV/EBITDA needs to eventually be supported by better profitability," Credit Suisse said.
According to the broker, which keeps a "neutral" rating on the shares, the stock appears fairly valued.
Shares in AMD are currently up 10.7 per cent at 15.6 dollars on the Nasdaq.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
On a non-GAAP basis, the California-based company posted a net income of 19 million dollars for the second quarter, compared to a net loss of 40 million a year ago.
Revenue was up 19 per cent year-over-year, at 1.22 billion dollars, driven by higher revenue in computing and graphics.
For the third quarter of 2017, AMD expects revenue to increase approximately 23 per cent sequentially, give or take 3 percent.
"While management continues to execute well to targets that appear reasonable (...), current valuation of 27.4 times EV/EBITDA needs to eventually be supported by better profitability," Credit Suisse said.
According to the broker, which keeps a "neutral" rating on the shares, the stock appears fairly valued.
Shares in AMD are currently up 10.7 per cent at 15.6 dollars on the Nasdaq.
Copyright (c) 2017 CercleFinance.com. All rights reserved.