Advanced Micro Devices Positioned for Earnings Beat Ahead of Next Report

Investors seeking a reliable stock with a track record of beating earnings estimates should consider Advanced Micro Devices (AMD). This company operates within the Zacks Computer – Integrated Systems sector and is well-positioned to continue this trend in its upcoming quarterly report.

AMD has marked a favorable streak by surpassing earnings estimates, particularly over the last two quarters. The average surprise during this period was 1.48%, indicating consistent performance.

Earnings Performance Overview

In the most recent quarter, analysts anticipated that AMD would report earnings of $1.07 per share. However, the company exceeded expectations by delivering $1.09 per share, achieving a surprise of 1.87%. In the quarter prior, the consensus estimate was $0.91 per share, and AMD reported $0.92 per share, resulting in a surprise of 1.10%.

Price and EPS Surprise

This consistent performance has been reflected in a positive shift in earnings estimates for AMD. Currently, the Zacks Earnings ESP (Expected Surprise Prediction) for AMD is positive, a strong indicator for an earnings beat, especially when coupled with its solid Zacks Rank.

Research indicates that stocks with a positive earnings ESP and a Zacks Rank of #3 (Hold) or higher achieve positive surprises nearly 70% of the time. In practical terms, if you assess ten stocks with this combination, as many as seven could exceed consensus estimates.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate. The Most Accurate Estimate reflects the most recent analyst revisions, which often offer more accurate forecasts close to earnings releases.

Currently, AMD possesses an earnings ESP of +0.74%, indicating that analysts are becoming increasingly optimistic about the company’s earnings potential. This, combined with its Zacks Rank #3, suggests a strong possibility of another earnings beat. The next earnings report is set to be released on May 6, 2025.

Understanding Earnings ESP

It’s crucial to note that a negative earnings ESP can weaken its predictive power; however, it does not automatically imply an earnings miss. Many companies can still surpass consensus EPS estimates, while others may stabilize even if they fall short.

Therefore, checking a company’s earnings ESP ahead of an earnings release is vital for informing investment decisions. Utilizing our earnings ESP Filter can help identify stocks poised for opportunity.

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Advanced Micro Devices, Inc. (AMD) offers valuable market performance analysis.

The views expressed here are the author’s own and do not necessarily reflect those of Nasdaq, Inc.